Terra invests in a diversified portfolio of publicly traded shares in both the energy and mining sectors and judiciously selects the firms in which it invests. To ensure liquidity, our funds only invest in publicly listed firms. Investments in private companies are not permitted.

Terra also limits the number of resource firms we invest in so that our portfolios are more focused. Most flow-through funds invest in between 50 to 150 companies. However, once a fund has more than 35 sector investments, it typically behaves more like an index for that sector with little chance of outperforming. Because our goal is to outperform, our fund only invests in approximately 25 to 30 resource companies.

Terra is also better able to pay lower premiums because we are only interested in acquiring a limited number of companies and therefore are more selective in our investments. By carefully managing the size of the portfolio and the flow-through premiums paid, there is a higher likelihood of greater returns.