Portfolio Manager Insights

Favorable supply-demand profile may help copper stocks shine

Fidelity’s Matthew Moulis sees luster in the stocks of copper producers, given strong demand drivers and industry challenges for boosting supply.

By: Matt Moulis
Updated: 10/20/2025
  • In assessing the market for global commodities, Fidelity Portfolio Manager Matthew Moulis is taking a close look at the stocks of certain copper producers, as he believes the commodity has the most attractive supply-and-demand profile among all metals.
  • “I expect demand for copper to increase as the global economy invests in the U.S. power grid and its infrastructure, electric vehicles, and renewable sources of energy,” says Moulis, who in February was named portfolio manager of Fidelity Advisor® Global Commodity Stock Fund. “At the same time, adding copper supply is challenging because the lead time for projects can be more than a decade before initial production begins, capital costs are large, and many countries are reluctant to approve new projects because of concerns about water usage and tailings (residue waste) disposal.”
  • This favorable supply-and-demand dynamic is an example of what Moulis seeks when choosing commodities-related investments for the portfolio. He favors companies in commodity subindustries where he expects the balance between supply and demand to tighten, resulting in higher prices for those commodities − and potentially greater profits for the producers and higher stock prices.
  • Moulis prefers commodity producers with low-cost positions within a particular commodity subindustry, which he believes can drive the stock over time.
  • For example, he cites Vancouver-based First Quantum Minerals as an outsized fund holding at the end of August. More than 80% of the company’s revenue comes from copper mining production, according to Moulis.
  • “It’s one of only a few essentially pure-play copper producers,” he says. “The company has opportunities to grow production through projects in South America, including the potential restart of the Cobre mine in Panama, which was shut down in 2024 for political reasons. I believe that would be a significant catalyst for First Quantum.”
  • Another focused copper producer in the portfolio is Antofagasta, a London-based Chilean multinational company. “I like that Antofagasta has high family ownership, which helps align incentives with shareholders,” says Moulis. “In addition, the company has runway to expand production through brownfield expansion projects, which are simpler than greenfield projects.”
  • He’s also taken a shine to Lundin Mining, a large copper producer based in Vancouver, noting its good track record of operational execution, strong cost control and room to grow production in a capital-efficient manner.
  • Beyond their company-specific strengths, Moulis sees each holding as a potential acquisition target for a larger, diversified metals producer – further justifying the fund’s outsized exposure to them.
  • “I believe major miners such as BHP Group, Glencore and Rio Tinto may be inclined to pay a premium to acquire independent companies with distinctive copper development portfolios,” he suggests.
Explore more on:
Equity Growth International Materials Sectors
FEATURED FUND

Fidelity Advisor Global Commodity Stock Fund (FFGIX)

Seeks capital appreciation.

View fund

Related insights

View all
Portfolio Manager Insights
Favorable supply-demand profile may help copper stocks shine
Fidelity’s Matthew Moulis sees luster in the stocks of copper producers, given strong demand drivers and industry challenges for boosting supply.
Portfolio Manager Insights
Turning market volatility into a strategic advantage
Often characterized by sudden sharp downturns, short-term dislocation in either a stock and/or segment of the market may be signaling the perfect time to strike, according to Fidelity’s Jed Weiss.
Portfolio Manager Insights
How Roku is remaking the market for advertising on streaming services
Following the introduction of Roku Ads Manager, the streaming platform gets top billing in helping advertisers reach consumers while they watch their favorite television shows, says Fidelity's Becky Baker.

For specific fund information such as standard performance and holdings, please go to the "Funds Managed" link on this page.

Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. Nothing in this content should be considered to be legal or tax advice, and you are encouraged to consult your own lawyer, accountant, or other advisor before making any financial decision. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any security, sector, or investment strategy.

Fidelity does not provide legal or tax advice and the information provided herein is general in nature and should not be considered legal or tax advice. Consult with an attorney or a tax professional regarding your specific legal or tax situation.

Past performance and dividend rates are historical and do not guarantee future results.

Investing involves risk, including risk of loss.

Diversification does not ensure a profit or guarantee against loss.

Sector funds can be more volatile because of their narrow concentration in a specific industry. Growth stocks can perform differently from other types of stocks and the market as a whole and can be more volatile than other types of stocks. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. • Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. • Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. • In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation, credit, and default risks for both issuers and counterparties. • Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. • Floating-rate loans may not be fully collateralized and therefore may decline significantly in value. • The municipal market is volatile and can be significantly affected by adverse tax, legislative, or political changes, and the financial condition of the issuers of municipal securities. • The securities of smaller, less well-known companies can be more volatile than those of larger companies. • The funds can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. • Leverage can magnify the impact of adverse issuer, political, regulatory, market, or economic developments on a company. In the event of bankruptcy, a company’s creditors take precedence over the company’s stockholders. Although the companies that the fund invests in may be highly leveraged, the fund itself does not use leverage as an investment strategy. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. In the event of bankruptcy, a company’s creditors take precedence over the company’s stockholders. Third-party marks are the property of their respective owners; all other marks are the property of FMR LLC.

935099.93
5AAF7BA2593A4D5CAFD2EB7257489A8B