We enhance traditional research in energy equities by applying a systematic approach based on data analytics while leveraging 20 years of experience with management teams.
Mission Statement: To provide above market returns with below market risk by capturing changing capital efficiency in the energy sector. To be the experts in small and mid cap Energy stocks.
Petro Lotus has two core businesses:
1. An asset management business.
2. A data analytics product for fundamental buyside asset managers and energy decision makers.
Our asset management strategy focuses on asset level returns to capture the alpha from owning high efficiency, capital discipline, and asset quality and underweighting those in the opposite boat. We have no alpha in predicting commodity prices, nor does anyone, consistently. Our performance reflects a low risk, low oil/gas beta approach and above market returns. Dynamic factor weighting helps us achieve this result.
Our research for the buyside is:
Clear and comprehensive
Reflects monthly check-ins with each coverage company
Based on fundamentals incorporating well results/asset quality, inventory, ESG policies, assessment of management and valuation
Covers both U.S. and non-US names, resource play stocks and those targeting conventional and unconventional resources
Focuses on undercovered names (restructured, distressed names)
We seek to have as many short ideas as long ideas