The Energy Transition.
As resources tighten, demographics evolve and the environment degrades, a new energy economy is emerging. Fossil fuels are being replaced by more sustainable sources of energy. Changes to the way we store, transport and consume energy will create new risks and historic investment opportunities. Our sustainability thesis, combined with a proven value discipline, forge a logical path to superior investment returns.
The Energy Transition has enormous lucrative potential — but disruption always creates risk. So we focus only on the strongest companies: “blue chip” businesses operating in the green economy. We apply intensive private equity-style diligence and only hold stocks when we see significant discounts to intrinsic value. And we strive to keep fees and turnover low and maintain concentrated portfolios.
Knowing our space.
Greenchip is well positioned for the Energy Transition. As resource and environmental issues become more challenging, prices will be forced to adjust, and the companies Greenchip has invested in will be in great demand. Having focused exclusively on environmental sectors for almost a decade, we have a deep knowledge of these sectors and are confident we can continue to deliver superior returns for our investors.
Patience and commitment.
Capital formation is currently still elusive; bubbles continue to flourish in consumption and government debt. Markets are distorted and prices — the most important tool in capitalism — aren’t responding in a normal fashion to changes in demand and supply. This dynamic is deeply entrenched and has gone on for years, but is unlikely to last much longer. Real economic growth can only be achieved by investment in innovation, infrastructure and human resources.