BP: Low-Risk Way to Gain Exposure to Renewable Energy Transition

Chris Karlin of Aquitania Capital Management presented his in-depth investment thesis on BP (UK: BP, US: BP) at Best Ideas 2021.

Thesis summary:

BP is one of the world’s major oil companies. Energy companies in general have fallen out of favor among investors for several reasons, including both the shift towards factoring environmental costs and benefits into the investment decision process and the shift towards less capital-intensive, higher-growth businesses.

BP offers both a short-term opportunity as an effective hedge against many risks present in exuberant equity markets as well as a long-term opportunity for substantial rerating as it transitions into a sustainable energy company.

BP is one of the lowest-risk ways to gain exposure to renewable energy given its ability to self-finance the transition. Chris views BP as uniquely positioned to help protect and grow capital over the next several years.

Listen to this session:

slide presentation audio recording

About the instructor:

Christopher Karlin has been in the investment business since 1991. Prior to founding Aquitania Capital Management in 2012, Christopher held positions as a Research Analyst and Portfolio Manager at First Pacific Advisors, Kestrel Investment Management and Fairview Capital Investment Management. Christopher interned with Farallon Capital Management while pursuing his MBA. He began his career with Wells Fargo Nikko Investment Advisors which later became a part of Blackrock. Christopher received his BBA from the University of Wisconsin in 1990 his MBA from Yale University in 1998 and has held the CFA designation since 1994.

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