The Delbrook Resource Opportunities Master Fund returned an impressive 20.4% during Q4 2025, bringing its full-year performance to a blistering 151%. Since inception, the fund has put up an annualized performance of 25.4%.
During 2025, Delbrook held a 61.9% net long exposure with an average 119.1% gross exposure. As of the end of the year, the fund’s top five long positions were 42% of its net asset value, which was in line with past quarters.
“The strong performance of the fund in 2025 is a testament to the hard work the investment team has put into building a bespoke portfolio of deeply researched companies,” the Delbrook team wrote. “In addition, the team’s strong work on commodity trends enabled efficient capital allocation while avoiding the underperforming areas that so often plague commodity investors.”
Structural changes in commodities
In their fourth-quarter letter to investors, which was obtained by Hedge Fund Alpha, the Delbrook team said they think large institutional investors just began to return to the global materials sector in 2025, with that shift happening for both macroeconomic and fundamental reasons. Macro reasons include debasement and geopolitics, while fundamental reasons include attractive valuations in both absolute and relative terms.
The Delbrook team also pointed to an increasing imbalance in supply and demand for many commodities following decades of underinvestment. Other factors include the tear-down of trade alliances that were once solid, including bans on trading many commodities that are critical to economic stability.
According to the Delbrook team, conditions are “ripe” for “explosive” price movements, as demonstrated by gold, silver and copper, which have surged 90%, 270% and 42%, respectively since the start of 2025. They emphasized that what’s happening is structural rather than cyclical.
“As we enter 2026, the Fund is well positioned to continue its strong performance,” the Delbrook team wrote. “While we have adjusted exposure based on the appreciation of our top ideas, we believe the Fund continues to have a bias towards value and a focus on uncovering areas well in advance of broad market participants.”
Top contributors
Top contributors to Delbrook’s Q4 performance were long positions in
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