KJH Energy Partners Fund
What is the investment objective of the KJH Energy Partners Fund?
The investment objective is to generate long-term capital growth, predominantly through the ownership of North American equities of companies that are a) engaged in exploration and development of oil and gas; or b) provide energy-related services to such companies. Specifically, the goal of the Fund is to outperform the energy benchmark over a full market cycle. The Fund was launched because we believe Canada’s capital markets for junior and intermediate companies are unique in the world and that significant value can be found in our country’s energy sector. This view is based on the investment team’s deep experience and expertise, not only in investing, but also in managing, governing and advising oil and gas enterprises
What does the KJH Energy Partners Fund invest in?
The Fund predominantly invests in small and mid-sized (junior and intermediate) Canadian oil & gas companies. It may also take positions in service-related companies, such as tanker companies, pipeline providers, and equipment manufacturers. It will also periodically take positions in larger, vertically integrated oil companies, and U.S. and international names as the Portfolio Manager sees fit.
Why this asset mix?
The Fund targets companies best positioned to take advantage of a shift in sentiment towards the energy industry. The junior and intermediate companies in particular have paid down a massive amount of debt, and we believe are well-positioned for any market environment moving forward. As a general comment, the junior and intermediate companies are also exposed to political forces more so than the vertically integrated majors are.
What is the role of the KJH Energy Partners Fund in your portfolio?
This Fund is a concentrated bet on a downtrodden sector that given a small shift in investor sentiment, could produce meaningful, outsized returns for a balanced, well-diversified portfolio.