Investing in Scarce Resources by Alyssa Abkowitz (Essay Sample)

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Investing in Scarce Resources
The article "Investing in Scarce Resources" by Alyssa Abkowitz addresses the issue of scarce resource investment that is perceived and taken to be uncomfortable for discussion at the cocktail parties. However, the scarce investment is favorable in the spheres at the higher-end of family offices as well as fund hedge that capitalizes on the shortage of resources globally (Abkowitz). The scarcity issue has become very common in the media. That makes it hard to tell the real issues from the formulated ones. Thus, the investment organizations have termed it beneficial to invest in projects based on anticipation of a shortage. One of the scenarios is making an investment in sound technology so as to detect leakages in the pipes.
Impax, an organization, based in London that deals with asset management and as well invests in resource-scarce realized a 415% profit margin. That is after making an investment in precise irrigation and also in the water treatment. In comparison to the previous year, the firm had raised the assets under management from $137 to $706 million (Abkowitz). According to Dhillon, it is more profitable to deal with resource efficiency rather than to deal with the raw materials. Therefore, investing in the resource scarcity is one of the most profitable strategies that are prevalent to the many factors in the society. Such factors include the rise in population and the recession of the upcoming markets. One of such strategy is the investment in technology that depends on utilizing scarce resources. Kleinwort investors, managing water-related assets have outperformed the eleven years world index by raising its asset management to the current $1.5 billion.
Making of investment in the time when shortages occur is an unpredictable move. For example, the copper prices rose in the spring when a financial crisis occurred, but the prices dropped later by 40% before the beginning of winter (Abkowitz). Water is one of the scarce resources since only 2.5% of it is said to be fresh. One of the determining factors towards water strategy portfolio is the scarcity of infrastructure. That involves the pumps, valves and the pipes which are used to convey water to farms for irrigation, to drainage systems, and to the homes. According to Raul, the efficiency of water as a resource has become one of the bases for his firm, realizing up to 20% of its equity in the public strategy.
In Asia new infrastructure need to be put in place so as to supply clean water o the cities where nearly 23% of the wealthy individuals live. Everbright an investment firm in China is currently managing the wastewater and treating it (Abkowitz). The firm has become the favorite among the wealthy who needs the waste water to be carried away from their premises. Due to the rise in the water treatment opportunity, other firms are entering the emerging water treatment market. In the US, the investment in the pipe technology has been revived. Pure Technologies, an investment firm in the pipe technology has come up with a sound wave that detects leakages. The firm is reaping benefits from the scarce resource technology.
Jeremy, an investor in a Boston firm, predicts that there would occur a shortage of phosphorous in 20 years to come. The demand is rising since the element is being used in the manufacture of very many commodities. Such includes toothpaste and fertilizers. Therefore, due the shortage the prices of phosphorous are already on the rise. In 2008, the price rose by 800% since the producing countries ...