Hunterbrook – Bloomberg

A third model that Hunterbrook has emphasized is that it could trade commodities based on its reporting. The form is something like: You hire the only foreign correspondent in a faraway country that is the leading producer of unobtainium, she learns that a coup is in the offing and the new military junta will ban unobtainium exports, you go long unobtainium futures, you publish her story, the price of unobtainium spikes, you profit.

This strikes me as a pretty good model, when you put it like that, but how often are your crack reporters really going to get advance notice of market-moving coups in commodity-exporting countries? If you could industrialize that it would be pretty cool, for you, but pretty bad, for the commodity-exporting countries. Your investor letter would be like “we had a great quarter, driven by continuing strong coup activity.”

Anyway Hunterbrook’s latest report yesterday isn’t quite that, but it does begin with a secret flight that might disrupt nickel supplies….

Source: Hunterbrook – Bloomberg