Portfolio Overview
The Food Security Portfolio is designed to capture opportunities across the global food supply chain, from agricultural inputs and production to processing and distribution. As of July 31, 2026, the portfolio holds 22 open positions, with a strong tilt toward fertilizers, aquaculture, and diversified agribusinesses.
Recent Performance
Over the past week, the portfolio benefited from robust gains in fertilizer producers. CF Industries (CF) surged 18.67% since its initial quote, while K+S (KPLUY) gained 11.44%. GrainCorp (GRCLF) also delivered an impressive 35.26% return, reflecting strong global grain demand and tight supply. These gains were partially offset by weakness in Corteva (CTVA), which fell 8.13%.
Key Drivers
- Fertilizer demand: Rising crop prices and tight inventories have boosted fertilizer volumes and pricing power.
- Aquaculture strength: Mowi (MHGVY) and SalMar (SALRF) remain stable, supported by strong salmon prices.
- Grain supply concerns: Weather disruptions in key exporting regions have lifted grain prices, benefiting GrainCorp.
Portfolio Adjustments
We have decided to close our position in Corteva (CTVA). The stock has broken its investment thesis due to margin compression in its seed and crop protection segments, coupled with disappointing earnings. We believe capital is better deployed in other holdings with stronger momentum and fundamentals.
Risk Concentration
The portfolio has a moderate concentration in fertilizers (CF, K+S, Nutrien) and aquaculture (Mowi, SalMar, Bakkafrost). While these sectors are performing well, they are sensitive to commodity price cycles and input costs. We are monitoring weather patterns and geopolitical risks that could disrupt supply chains.
What to Watch
- Quarterly earnings from major agribusinesses, especially Bunge (BG) and Wilmar (WLMIF).
- Global fertilizer prices and natural gas costs, which impact CF and K+S.
- El Niño/La Niña forecasts that could affect crop yields and food prices.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research or consult a financial advisor before making investment decisions.