Profit from decarbonization: short the losers from energy transition in a market neutral wrapper.
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