During a recent Arizona trip, Janus Henderson portfolio manager Darko Kuzmanovic observed an industrial belt of semiconductor plants, power stations, and data centres taking shape. This experience solidified his view that global commodity demand is being reshaped by a broader industrial revival, extending beyond the market’s current fixation on artificial intelligence (AI). Kuzmanovic, whose firm Janus Henderson is a global asset management company, noted, “Right now we’re all fixated on AI and computing, but just to get to the point at which that technology changes things for us, you need all this material.”
Despite this outlook, Kuzmanovic’s $91.8 million global natural resources fund has navigated significant volatility this year. He argues investors overlook a crucial underlying theme: industrialisation. A short supply of materials is needed for industrial infrastructure, particularly as Western governments prioritise re-shoring manufacturing and diversifying supply chains. For Kuzmanovic, copper presents a prime investment opportunity, vital for constructing new factories and expanded electricity grids.
Kuzmanovic stresses copper’s investment case extends beyond AI, underpinning broader electrification and clean energy infrastructure; persistent supply constraints bolster his bullish stance. His preferred holdings include US copper giant Freeport-McMoRan. He also favours diversified miners like BHP, a multinational mining company whose copper exposure enhances valuation, and Glencore, a global diversified natural resource company.
Beyond copper, Kuzmanovic is enthusiastic about uranium, foreseeing a nuclear renaissance with accelerated global facility builds. He cites significant demand, like the US target to quadruple nuclear capacity by 2050. However, restarting and developing mines are challenging and costly, creating supply tightness. Despite investor pullbacks from uranium equities, he holds NexGen Energy, a Canadian uranium exploration and development company, and Paladin Energy, an Australian uranium production company, believing current tightness signals future potential.
