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This conversation was a critical examination of Kai Hoffmann’s launch of KAMAVEST Asset Management GmbH, a new junior mining-focused investment fund based in Europe. Hoffmann explained why now is the right time to start despite weak junior markets, outlined his and his partner’s qualifications, addressed potential conflicts of interest with his existing service business, and detailed the fund’s structure, risk management, investment strategy, and fee model. The fund will be long-only, UCITS-compliant, mainly focused on Canadian mining stocks (gold, silver, copper), with a portfolio split between majors, mid-tiers, and juniors. Hoffmann emphasized transparency, avoiding loyalty-based investment mistakes, maintaining strict risk controls, and building a durable, investor-first fund without chasing flashy performance.
TL;DR
- KAMAVEST is launching to fill a gap in Europe’s mining-focused asset management sector, targeting long-term growth in an underserved market.
- The fund’s strategy is bottom-up, people-first investing with strict risk management, focusing mostly on gold, silver, and copper juniors, mid-tiers, and majors.
- Kai Hoffmann does have another business which focuses on marketing for junior mining companies, but he says clear internal separation and transparency are promised to prevent conflicts of interest between the fund and issuer clients.
- The fund will be UCITS-compliant with daily liquidity, ~1% fees, and a structure balancing stability (majors/royalties) with upside potential (juniors).
- Hoffmann openly admits past investment mistakes, stressing that emotional loyalty has no place in managing other people’s money, saying that objectivity will govern all decisions.
Why Launch a Junior Mining Fund Now, When Gold Is Up but Juniors Are Still Stagnant?
In an industry where failure is the norm and recycling advocates claim “we don’t need mining anymore,” Kai Hoffmann is launching a new junior mining-focused fund called KAMAVEST Asset Management GmbH.
But … why now?
“It’s a natural evolution,” Hoffmann explained. “The timing is right. Gold is running, but the juniors haven’t yet. We have two or three years ahead of us where gains could be substantial.”
The fund, based in Germany and Belgium, targets a gap Hoffmann sees in Europe’s underserved mining-focused asset management sector. “Top of my head, I can mention maybe five resource funds here,” he said.
Hoffmann dismisses any illusion of altruism: “I’m not trying to save the world with our resource fund. We’re trying to benefit from the cycle.”
What Makes Kai Hoffmann and Manuel Py Qualified to Manage Other People’s Money?
Hoffmann acknowledges the fundamental skepticism: “It really comes down to experience.”
With a career rooted in mining since 2008 and thousands of site visits and meetings with junior companies, Hoffmann believes his and his partner Manuel’s deep industry network is key. “We know who to call and who’s really pulling the strings.”
Manuel, with an asset management background and directorship at Cartier Resources, complements Hoffmann’s experience. Py will also handle regulatory and compliance duties — a role Hoffmann admits he wanted no part of: “I told him Manuel, happy to join, but I want nothing to do with the compliance stuff unless I really have to.”
How Will KAMAVEST Manage Conflicts of Interest Given Hoffmann’s Existing Service Business?
Here lies one of the thorniest issues.
Hoffmann runs Soar Financial, a service business offering PR and event organization for mining companies. Could there be a conflict between asking issuers for service money while investing fund capital into them?
He admits it’s complicated: “It’s not as easy to answer, quite honestly.” The fund will focus on larger producers and royalty companies, different from the juniors that Soar typically services.
Still, Hoffmann acknowledges the optics: “It’ll be interesting once we’re fully live whether companies understand that a ‘no’ on the fund side doesn’t mean a ‘no’ on the PR side.”
Is the Fund Starting from Scratch or Bringing in Existing Investors?
KAMAVEST will not be starting from zero. Manuel is transferring a pre-existing client base into the new firm, providing a foundation of committed mining investors.
“I probably would have said no without that base, quite honestly,” Hoffmann admitted.
Will KAMAVEST Seek New Investors or Stay Exclusive?
While the initial base is secure, growth is a target. KAMAVEST will be visible at conferences, on social media, and through Soar Financial’s platforms.
Still, Hoffmann sets a clear boundary: “I don’t want to run a €200 million resource fund. I’m not interested in becoming a second GDXJ.”
How Big Will the Fund Be at Launch, and What Are the Growth Targets?
At launch, the fund targets “low double-digit millions” in euros, meaning somewhere between €10M and €20M. Growth goals will depend on performance but exact targets remain flexible.
What is the Fee Structure for Investors?
Finalization is ongoing, but Hoffmann suggests management fees will be around 1 to 1.5%.
“We don’t want to be the cheapest, but we don’t want to be the most expensive either,” he said, citing the need to fund travel, site visits, and due diligence.
What Is the Main Investment Strategy for the Fund?
The fund will pursue a long-term, bottom-up approach, focusing on people, capital structure, jurisdiction, and finally geology.
“We start with the people. Can they raise money even in a weak market?”
Geological advice will come from consulting geologists once the fund is better capitalized. For now, Hoffmann relies on his “gut check” and network.
What Commodities Will the Fund Focus On?
Primarily gold, silver, and copper, with uranium and lithium only considered in exceptional cases.
“There’s got to be an exceptional opportunity for us to include lithium or uranium.”
Will KAMAVEST Only Buy Canadian Stocks or Explore ASX Opportunities?
The fund will be 90% Canadian-focused initially, given Hoffmann’s network and expertise.
“I hate waking up at 3:00 a.m. to check ASX press releases,” he joked, hinting that Australian investments may be added opportunistically.
How Will the Fund Manage Risk?
Risk will be diversified across a pyramid structure:
- – 50% majors and royalty companies
- – 30% mid-tier growth stories
- – 20% juniors
Position sizing will be strict. “A $10 million market cap company will never be 10% of the fund,” Hoffmann said.
He openly criticizes loyalty-based investing mistakes: “Don’t invest into friends’ companies. I learned that the hard way.”
What Is the Fund’s Selling Strategy to Exit Positions Without Crashing Stocks?
Unlike many anonymous sellers, Hoffmann pledges transparency: “I’ll call the company and say, ‘Hey, I need to sell 100,000 shares. Can you help me place the block?'”
He acknowledges that fund managers can inadvertently tank small stocks if they exit poorly and promises to avoid that behavior.
Where Will KAMAVEST Invest Geographically?
KAMAVEST remains jurisdiction-agnostic but with red lines: no Venezuela, Bolivia, or current Sudan-level risk.
West Africa and stable parts of Latin America are acceptable if country risk is manageable.
Which Companies Offer a Template for Future Investments?
Montage Gold (TSX.V:MAU) is Hoffmann’s model.
“I did the site visit to Côte d’Ivoire, saw the mine layout firsthand. I knew this was happening,” Hoffmann said. He bought at ~C$0.70; today, Montage trades above C$3.90.
Will KAMAVEST Launch Additional Funds in the Future?
Not immediately.
The current focus is on building a strong single resource fund. Future products are being designed but details remain under wraps.
How Will KAMAVEST Report to Investors?
Monthly newsletters will summarize portfolio companies’ news and offer personal commentary from Hoffmann, without acting as research.
Transparency is a central goal: “If you manage other people’s money, you have to be reachable.”
How Will KAMAVEST Differentiate Itself from Other Resource Funds?
Hoffmann’s blunt answer: activity, trust, and personality.
“There’s a lack of product in Europe. Even if we’re the sixth mining fund, it’s not the 600th.”
He stresses he will not sacrifice quality for short-term performance: “I want to put out a product that I can wake up every morning and be happy about, even if we underperform by 3%.”
Kai Hoffman of KAMAVEST Interview
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