Approach
The global energy sector is shifting from a dependence on fossil fuels to renewable sources. We believe we are only now just at the start of the energy transition. The actions taken by individuals, corporations and governments over the next couple of years will define global economies and our living environment for our generation, and those that follow. We do not foresee this to be a quick nor smooth transition. As the transition matures, we will see dislocations and mispricing in the physical commodity markets and relating financial markets. This may be as a result of a lack of capex in fossils and transportation infrastructure over the past 7 years, an aging and insufficient global power grid, emerging renewable technologies and political pressure to rush the phase-in of renewable infrastructure.
We believe we can extract significant alpha from these market dislocations through a refined and consistent discretionary investment process that translates a granular understanding of physical commodities and shipping market fundamentals into high conviction investments in the relating financial markets. Each discretionary idea is based on the decades of experience of the investment team, their interpretation of the physical and financial markets, and the broader macro fundamental environment, coupled with their assessment of the risks.