Before a storm comes in, winds tend to pick up. Skies turn from clear and blue to dull and gray, as dark clouds begin to roll in. Thunder is heard from the distance, and lightening starts illuminating the sky. Animal intuitions collectively kick in, and herds of animals naturally begin to run from the storm.
But not the bison.
When animals run from the storm, they rarely outrun it. Storms tend to travel more rapidly than the animals, so they catch up quickly, and the animals are likely to be stuck in the bad weather even longer as they’re running along with the intensity, still endeavoring to outrun it to serenity.
The bison’s unique reaction during a storm contrasts the instincts of the other animals. Instead of running away, the bison charges towards the storm head on. They recognize that by plowing through it, they get out of it faster, and minimize the amount of risk, time, and frustration other animals experience from trying to run away from the inevitable.
Like a bison, our fund faces head first into the storm. Bison’s portfolio is modeled after “old school” hedge funds: we are concentrated and volatile with a focus on maximizing absolute returns. We invest in small-cap, public companies that meet our stringent criteria. Once a security is added to the portfolio, the position is held with conviction through periods of significant volatility.
We focus on dislocations in the energy market and identify areas where there is a disconnect between the share price of a company and its intrinsic value. Securities must have low debt, proven assets, and exceptional management teams to meet qualification standards. Our focus on value and pricing allows us to screen for securities with a price low enough to create a substantial margin of safety, over a variety of market conditions.
Portfolio companies must also have high quality assets: there must be recent positive operational and financial results that demonstrate management capabilities, resource quality, and asset economics in a challenging environment.
We screen for proven management teams with a track record of success, and many portfolio companies are on their 3rd or 4th iterations.
Our portfolio holdings have substantial additional catalysts likely to galvanize a re-rate, such as “embedded” pipeline assets, “un-booked reserves” or are potential buyout candidates. Companies are often rapidly de-leveraging high-interest debt, cutting operating costs, buying back back shares or close to issuing dividends.
Chief Investment Officer & Founder
Josh has built his career concentrating on deep value opportunities for investors. He has over 15 years of experience in investment management, 10 of which were focused on publicly-traded oil and gas securities. Josh became Chairman of the Board of RMP Energy in 2017. After refreshing the board and management team and rebranding the company (Iron Bridge Resources), it was bought out at a 78% premium in 2018. Josh is the author of numerous articles on oil & gas investments and the guest speaker at various energy industry conferences.
He graduated with honors from the University of Chicago in economics. Josh was a management consultant to Fortune 500 companies and private equity firms, and then an investment analyst at a private equity fund. Josh worked as an energy investment analyst for a multi-billion dollar, single family office, which was nominated as Institutional Investor's Single Family Office of the Year in 2008.