Vivid Capital Management Formally Announces Energy Transition Fund Strategy

Following 2020 returns of 115.9%, Asset Manager announces the formalization of recalibrated investment strategy within the Vivid Energy Fund, which reflects the global transformation of energy, transportation and infrastructure towards decarbonization and a net-zero economy. 

TORONTO, Jan. 21, 2021 /CNW/ - Vivid Capital Management, a private asset management firm focused on the multi-decade transition in global energy and transportation industries is pleased to release details on the Vivid Energy Fund, which represents the culmination of an investment strategy that yielded 115.9% in returns over 2020, compared to the fund's benchmark, the S&P/TSX Capped Energy Index, which ended the year down 34.6%.

Having inferred the early signs of a shift in the global energy and transportation industries towards decarbonization and net-zero emissions targets in late 2019, James Bradford, Vivid Capital Founder and Sr. Portfolio Manager, began repositioning the Vivid Energy Fund to capitalize on the transition towards cleaner, renewable energy, while maintaining a focus on the present-day opportunities in the traditional hydrocarbons industries.

Focused on navigating the energy transition through the right mix of growth, technological innovation, undervalued hydrocarbons and supply chain raw materials, the recalibrated Vivid Energy Fund will continue to operate under an open energy and transportation focused mandate.

The fund allocates capital across the energy industry in such a way that reflects both where the global energy market is today, through free cash flow generative hydrocarbon industries, and the direction it is heading in the future, through growth-oriented renewables and zero carbon energy and transportation.

"By 2050 the world's energy demands are expected to be more than 50% greater than they are today. To meet that demand, we need to use all energy sources in their most efficient and effective applications," says Bradford. "This will spawn some very high growth industries in renewables and spectacular investment opportunities along the way, but at the same time it appears as though in 2050 we'll be using about the same amount of hydrocarbons as we are today, which potentially offers decades of free cash flow from the hydrocarbon industry which is also attractive."

Globally, more than half of GDP, 2.6 billion people and a quarter of total carbon emissions are covered by a national net-zero target – and over time those figures are only going to rise. The investment opportunity this global transformation has created is historic in scope; Vivid is poised to capitalize on this transformation, which will be further boosted by an incoming Biden administration with a clearly defined energy mandate which similarly focuses on clean and renewable energy.

About Vivid Capital Management:

Founded in 2014, Vivid Capital Management is an independently owned asset manager that instinctively seeks inceptive trends, differentiated ideas, underappreciated companies and macro themes with large payoffs for investment by The Vivid Energy Fund. 

Our skill lies in identifying these opportunities and realizing their magnitude early. Vivid's investments are often in uncrowded areas of the market both from a long and a short perspective. The Vivid Energy Fund focuses its investments in the irreversible transition underway in energy and transportation towards energy sources, products and materials which achieve the maximum benefit for the lowest cost with the lowest environmental footprint.

SOURCE Vivid Capital Management

Media Contact: Vested, Adam Bernards, [email protected], 416.322.2863