Ana Balat adheres to a long-term investment strategy in markets in the Afro-Eurasian markets that are large suppliers of energy and commodities, and that combine the availability of large commodity asset pools with medium to high securities market liquidity.
Energy and commodity prices have risen dramatically over the past decade, due to increased demand from China, India, and other emerging markets that require large supplies of energy and commodities to support manufacturing and infrastructure development. China alone grew at an average of 10 per cent a year from 2000-2010, accounting for 25 per cent of global GDP growth in this period. By the end of 2011, average prices for energy and base metals in real terms were 3 times as high compared to a decade ago. Food and raw material prices also rose markedly. It should be noted that, looking to the near-term, and given the weak global activity and increased downside risks, commodity exporting markets shall face significant challenges, in particular in emerging economies.