Short the most overvalued & vulnerable in the carbon value chain…
- Focus on producers, transporters, marketers, processors, and users of oil, natural gas and coal
…in a market-neutral, ESG-friendly strategy…
- Hedge carbon value chain shorts with a highly-diversified, systematically constructed long book to hedge factor risk apart from carbon
- Chosen from an ESG-friendly universe of 3000+ stocks
… positioning for continuation of carbon industry underperformance
- Cost of alternatives such as wind, solar, electric cars, and energy storage will continue to decline, with tipping points approaching
- Regulatory environment will continue to increasingly tighten, at an increasing pace
- Carbon value chain industry structure will likely continue to contribute to poor returns on capital – undifferentiated, highly-competitive, capital intensive, unstable foreign cartel, etc.
- Divestment — increasing pressure not to own/finance at any price – leading to deterioration in relative multiples
HCO is a true ESG Fund, not “greenwashed”
We short the carbon value chain (negative carbon footprint)
– unique and without known peers