William Thomson advocates investing in liquid real assets for commodity exposure amid supply constraints

William Thomson argues that the most reliable way to capture commodity upside today is not by speculating on raw price moves but by investing in “liquid real assets” , the companies and infrastructure that turn raw materials into the modern, functioning economy.

According to an Opalesque video presentation, Thomson, founder and managing partner of Massif Capital, defines liquid real assets broadly: not only mines and wells but the industrial and engineering capacity that converts commodities into usable products and services. He said the universe Massif examines comprises roughly 3,100 companies (market capitalisations above $200m) operating in energy, materials, select industrials and infrastructure, excluding China, Russia and India, with an aggregate market capitalisation of about $20 trillion. “These are giant science projects that are as technologically complicated and as difficult to operate as anything out of Silicon Valley,” Thomson said, citing Escondida in Chile , a mine that produces about 5% of the world’s copper, runs the world’s largest desalination plant and is moving toward being fully renewable-powered , as an example of the scale, complexity and modernity of today’s resource businesses.

Thomson stresses that these businesses are not “old economy” relics. He noted that modern mining and energy employers often hire PhDs in geology, hydrology and engineering and use robotics and advanced automation. “These are the unheralded heroes of modern life,” he said, adding that an oil refinery can produce thousands of distinct products that underpin manufacturing, agriculture, transport and healthcare. For Massif, the investable attraction lies in the builders and operators bridging raw commodities and civilisation, not mere commodity-price exposure.

The strategy and its results
Massif Capital runs a global long/short equity strategy focused on liquid real assets. According to documents seen by Opalesque, the Massif Capital Real Assets Strategy returned 41% net of fees year-to-date at the end of Q3 2025 and has delivered annualised net-of-fees returns of about 14% since its launch on 1 January 2019, outperforming the MSCI All Cap World Index. The firm claims the strategy has generated approximately 8.4% annualised alpha against that index since inception and exhibits low beta, which the firm says reduces correlation with broad market moves and commodity-price swings.

Separately, reports of Massif’s Q3 2025 letter cited by industry coverage highlight a 36.1% net return for the quarter , described as the firm’s best quarter to date , and an inception annualised net-of-fees return of about 14.6%. The company presents these figures as evidence of skilful security selection, timing and differentiated positioning within energy, resources and industrials.

Micro over macro, diversification over prediction
Thomson emphasises a micro-driven approach: operational analysis, engineering quality and company-level fundamentals trump macro forecasting. He argued that while many investors try to time commodity supercycles, today’s backdrop differs from past demand-driven booms. He described current dynamics as supply-constrained , a “rolling crack up” of different commodities as existing asset bases approach production limits after a decade of under-investment. That supply-side stress, combined with policy-driven cost pressures and higher structural capital intensity, is, in his view, supportive of companies that can reliably convert scarce resources into essential products and services.

By focusing on liquid real assets across a diversified global universe, the strategy aims to deliver exposures that many investors lack. Thomson said this can produce “highly diversified returns to which people don’t have exposure,” arguing the outcome of failing to invest in real assets is more predictable , and materially adverse to daily life , than the uncertain payoffs of nascent technologies such as AI.

How investors can access liquid real assets
Industry providers and asset managers increasingly promote liquid ways to access real assets. According to State Street Global Advisors, exchange-traded funds can offer investors diversified, cost-efficient and highly liquid exposure to real assets , including commodities, infrastructure and real estate , enabling allocation without large capital commitments. DWS similarly describes “liquid real assets” strategies as tradable routes into infrastructure, real estate and commodity securities, highlighting ease of implementation and the capacity to scale exposures that would otherwise require illiquid, capital-intensive investments.

Massif presents its own specialist approach from Charlotte, North Carolina, as an active, concentrated means of accessing these themes, balancing environmental and economic considerations while pursuing uncorrelated long-term capital appreciation.

Investment implications
Thomson’s argument reframes commodity investing as an investment in operational capability and capital-intensive engineering rather than a pure macro bet on prices. That framing changes the decision set: it prioritises analytics on people, assets and processes; values diversification across asset-intensive businesses; and seeks low-beta, alpha-generating security selection. For investors looking to diversify beyond traditional equities and bonds, liquid real assets , accessed via active specialised managers, ETFs or liquid alternatives , offer a pragmatic route to gain exposure to the physical foundations of modern economic activity, according to the industry sources and company materials cited by Massif and asset managers.