Core Reserve Accounts
Pure defensive preservation: Hard-asset equities as the ultimate shield against inflation and currency devaluation — protecting real wealth while generating alpha in adverse regimes.
The Core Reserve Framework
Core Reserve accounts represent the most conservative expression of our Core pillar: capital preservation first, through hard-asset equities. In a world of structural inflation and accelerating fiat debasement, this strategy safeguards purchasing power and provides low-correlation ballast — while rigorous valuation discipline unlocks alpha from undervalued real-asset owners.
Why Hard-Asset Equities?
Core Reserve harnesses hard-asset equities to protect capital from inflation and currency devaluation while systematically producing alpha through valuation discipline and real-asset resilience.
- Inflation & currency protection: Revenues and asset values linked to real commodities and infrastructure that protect purchasing power.
- Portfolio ballast & low correlation: Defensive anchor that reduces portfolio volatility and drawdowns in inflationary regimes.
- Valuation discipline: Opportunistic buying during commodity troughs with strong asset-backed balance sheets.
- Real capital preservation: Focus on quality operators of tangible assets for durable compounding.
Deep dive → Core Segment Explained
Inflation Protection
Inflation erodes fiat wealth; Core Reserve counters this structurally by concentrating on businesses and assets that benefit from rising real prices.
- Hard-asset equities — Energy producers, miners and infrastructure owners whose cash flows track real prices.
- Alpha mechanism — Valuation-driven opportunities where asset scarcity and replacement costs create asymmetric upside.
Currency Devaluation Protection
Global monetary expansion and rising sovereign debts can debase fiat. Core Reserve prioritises assets with pricing power and real economic value.
- Hard-asset receipts — Revenues in hard/global pricing; reduced sensitivity to domestic currency debasement.
- Asymmetric payoff — Tactical positions that capture outsized gains during devaluation cycles.
The Core Reserve Edge
Indispensable amid continuously rising sovereign debt — Hard-asset equities provide essential ballast as global debt-to-GDP ratios escalate, delivering inflation protection and currency stability when traditional fixed-income assets falter under mounting fiscal pressures
- Real capital preservation in inflationary / devaluationary environments
- Ultra-low correlation to growth / tech equities
- Defensive profile: lower volatility, crisis outperformance
- Alpha production: valuation discipline + real-asset scarcity tailwinds
- Seamless integration: standalone or as 25–40% ballast in Core Stability Growth accounts
Different from broad equity strategies, Core Reserve places protection first — ideal as the anchor for risk-averse capital. For blended growth, explore our flagship Core Stability Growth.