(Important) HFI Research Changes Explained And What It Means For The HFI Portfolio
In about a week, I will be celebrating 9-years since I first launched "Hedge Fund Insights", which morphed into HFI Research. Over the past 9 years, it's been a steep learning curve with a lot of rough terrain along the way. Our grandfathered subscribers have seen the evolution of my writing and, hopefully, the improvement in the service along the way.
Last night, I announced to all paying subscribers that HFI Research has launched a new service called, "Ideas from HFI Research." The thinking behind this new service launch was centered around the collaboration efforts Jon Costello and I have made in covering the entire energy space.
Over the past 6-months, Jon has extensively covered the E&P space giving all paying subscribers a deep stack of ideas to go through. All of the names covered are on the E&P valuation spreadsheet, which will be linked below.
Going forward, the names that we have covered will be continuously updated on the E&P valuation sheet, which all paying subscribers here will have access to.
The big difference for existing subscribers will be the lack of "new" new idea write-ups. I think for any serious fund manager/analyst, covering the entire space with every rock turned is the best way to 1) build an edge and 2) build a circle of competence.
Following June 1, Jon will continue on the journey of turning every rock over to look for that hidden gem.
As for HFI Research subscribers, I believe it is my job to evaluate all of the names Jon has researched and determine which one is most attractive for the HFI Portfolio. This is why I believe the direction of HFI Research (main service) going forward will continue to be centered around:
Global macro oil and natural gas research
Best ideas from "Ideas from HFI Research"
The management of HFI Portfolio
HFI Portfolio and the changes made today...
As I look back on the journey of money management, my mistake was in my ability to correctly assess the risk/reward of various individual names. I believe this error came largely because of the lack of idea coverage I did. In this regard, Jon compliments my inability to cover more names perfectly.
By doing a deep dive in all of the names in the coverage universe, I can better assess which names are likely to outperform and which names won't. In addition, my board position at Gear Energy allows me deeper insights into the inner workings of the Canadian energy landscape, which should provide an edge in understanding individual names.
Combining 1) the vast coverage from Jon and 2) the insights I have built over the years, I believe the HFI Portfolio will be better managed in the future, and hopefully, the results will follow.
So if you are a subscriber looking for an easier way of filtering through ideas, then the easiest path is just to stick to what we are doing for the HFI Portfolio.
But if you are a subscriber who likes to read through every rock that Jon has turned over, then subscribing (in addition) to "Ideas from HFI Research" makes a ton of sense.
For most subscribers, the change will be subtle as we plan on continuously updating on the names that we own in the HFI Portfolio.