A Multi-Decade Opportunity
We believe the energy transition represents the most attractive, multi-decade investment trend available in the market today.
This structural megatrend is projected to impact markets worth $50 trillion in 2050—double today’s $25 trillion1.
To capitalize on this market opportunity, we believe investors must adopt a wider lens and be open to “non-obvious” opportunities in the megatrend: businesses that are either creating OR destroying value.
1Thunder Said Energy, “Energy transition: active duty?”, September 2023
Our Objective
Leveraging deep energy/commodity expertise in high-conviction sectors, we seek to generate superior risk-adjusted returns and long-term capital appreciation.
Our unique approach offers investors exposure to:
- A non-traditional strategy with low correlation to conventional indices
- Concentrated exposure to the energy transition structural megatrend
- An actively managed portfolio employing a global long/short strategy
Strategy Overview
Given the broad scope of the energy transition—both in its breadth and depth—our process is shaped by four key pillars:
Renewables
Clean power generation is essential to reducing greenhouse gas emissions, diversifying the energy mix, and meeting rising global energy demand.
Electrification
Leveraging clean power enhances the integration of renewable energy sources, helps decarbonize industry, and promotes energy efficiency and sustainability.
Low-Carbon Energy
Cleaner alternatives to carbon-intensive fossil fuels help reduce emissions and provide flexibility in the integration of renewable energy sources.
Decarbonization
Low-carbon or carbon-neutral technologies are fundamental to fostering environmental sustainability and energy resilience.
Our Investment Process
To build out our multi-sector portfolio, we follow a proven investment process that casts a broad net before sharpening our focus to up to 50 high-conviction holdings.
Idea Generation
To define our investment universe of roughly 1,000 companies, we conduct a global macro analysis within the context of key energy transition drivers.
Due Diligence
We analyze and assess financial and non-financial factors, trimming our investable universe to 200-300 companies. We then select roughly 100 names to regularly monitor for possible inclusion in the portfolio.
Portfolio Construction
We build positions in as many as 50 of our highest conviction ideas, creating a long/short portfolio that is 50%-60% net long and leveraged between 1.2x-1.5x.
Portfolio Management
Our active ownership approach is rooted in our ongoing analysis that incorporates macro and micro developments and relies upon consistent monitoring and reporting.
Risk Management
To help mitigate potential drawdowns, we deploy tactical hedges and align risk management decisions to conviction levels and return assessments.
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