Our strategy is simple.

Capture outperformance in the world's largest sector.

Kain Asset Management Strategy
Kain Asset Management Strategy
Kain Asset Management Strategy
Kain Asset Management Strategy
Kain Asset Management Strategy

The energy sector is technical, capital intensive and undergoes continuous change. In addition, highly unlikely but highly impactful events tend to occur with the passage of time. Overall, this results in a wide distribution of operational and corporate performance in the energy sector. Accordingly, we invest capital to capture these performance variations with a focus on generating and compounding absolute returns. 

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We seek to reduce both short-term volatility and absolute fat-tail risk with our long short strategy. The energy sector's wide performance distribution, combined with our fundamental analysis overlain with measurable data such as correlation (beta), enables us to proactively manage risk and isolate corporate performance (alpha) in a manner not replicable with a long-only energy strategy. 

The 3 Kain Principles

#1. Protect Capital

  • We avoid investments that:

    • Are hampered by poor balance sheets & liabilities

    • Have inferior management with poor execution

    • Develop uneconomic projects with low margins

    • Lack competitive advantages vs. peers

Kain Asset Management Strategy

#2. Capture Outperformance

  • We invest capital to gain exposure to:

    • Corporate financial strength & optionality

    • Management & execution excellence

    • Economic opportunities with leading margins

    • Companies with significant competitive advantages

Kain Asset Management Strategy

#3. Manage Beta & Risk    

  • We actively manage beta and risk to:

    • Isolate corporate performance (alpha) 

    • Minimize drawdowns, volatility & fat-tail risk

    • Generate returns independent of commodity prices

    • Compound absolute returns vs. swing-for-the-fence

Kain Asset Management Strategy