O’Connor Missed opportunities in net zero game

Even though some companies do not score well on conventional ESG dashboards, Ken Geren PM with UBS O’Connor say they may be valuable opportunities in the energy transition theme

28 Jun 2021

We identify companies or sectors that may be overlooked by traditional ESG investors

Ken Geren, Portfolio Manager, UBS O’Connor

Ken cites the example of the copper industry. He explained while the process of extracting and processing copper is difficult to decarbonize, copper is an important ingredient to the energy transition. Copper is needed to manufacture electric vehicles and modernize electric grids for renewable energy.

there is no transition without copper, which makes copper a good investment

How can investors be exposed to the full energy transition play?

A long/short approach can help

Companies affected by this energy transition to net zero may emerge as winners or losers.

We believe that investors who take a long/short approach to equity markets will find many investment opportunities.

The O’Connor Environmental Focus strategy, launched in June 2020, is a low net equity long/short strategy that focuses on companies impacted by or contributing to the energy transi­tion.

The UBS O’Connor team takes a top down/bottom up approach to investing and focuses on themes and sub themes that span sectors and geography.

We believe that the industry will remain investible for years to come, presenting opportunities on both the long and short side.

Additionally, we expect future investment opportunities to emerge as tradition­al energy companies reposition their businesses and deploy oil and gas associated cash flows into carbon friendly growth opportunities.

Need more information?

About Ken Geren

Ken joined UBS in January of 2020 where he is the Portfolio Manager of the Environmental Focus Fund strategy.

He has over 20 years of experience investing in energy and related sectors.

Prior to joining, Mr. Geren spent 14 years at Point72, and its predecessor, SAC Capital, where he managed the firm's largest energy portfolio. Earlier in his career, he was an oil services equity analyst at Jefferies & Co. Ken holds a BS from Indiana University and an MBA from the University of Michigan.

O’Connor’s 20-year heritage in hedge fund investing

UBS O’Connor has deep roots dating back to 1977 and is celebrating 20 years as a hedge fund manager. They continue to invest their flagship multi-strategy hedge fund with a nimble, relative value approach.

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