Recurrent Investment Advisors is a Houston-based asset manager investing in companies engaged in natural resources, energy and infrastructure. We are focused on, and seek to profit from, opportunities created by energy and commodity cycles. For more, see www.recurrentadvisors.com. We execute our natural resources and MLP infrastructure strategies, guided by these 5 principles: - Energy is cyclical - most managers either add (or destroy) value around cyclical turning points. Therefore, our process is built to deliver appropriate "buy" and "sell" signals at cyclical peaks and troughs. - Company returns tell a story - contrary to popular belief, energy company returns are not solely a product of commodity prices. Over time, quality companies and managements deliver returns that "mean-revert," even in wildly divergent commodity environments. Accordingly, we use long-term return profiles to identify companies capable of creating value throughout the cycle. - Valuation matters - we believe our process can translate current valuations into market expectations for future returns - allowing us to understand where return expectations may be too high or too low, and to invest accordingly. - Invest prudently in any cycle - we believe our analysis can provide a powerful, non-cyclical buy/sell discipline. We believe we can effectively compare companies across different subsectors within natural resources and energy, creating an apples-to-apples framework, to strip out commodity volatility. - Houston - our hometown is the unsung hero of our process. Our principals' deep relationships and connections in the capital of energy allow us to gain insight into how the market is evolving, whether we're at lunch, or t-ball practice.
