Sourcerock Group LLC

Overview

Sourcerock Group LLC is an alternative assets investment firm specializing in the energy sector, focusing on both traditional and alternative energy equities. The firm employs rigorous fundamental research, maintains frequent contact with energy management teams, and utilizes a model-based cash return on capital investment framework to construct a robust portfolio. Their investment approach is designed to produce consistent risk-adjusted returns across various energy environments. The firm's strategy emphasizes high-conviction investing, aiming to create alpha through both long and short positions. They prioritize strong risk management with low net exposure and factor awareness, allowing them to capitalize on short- and long-term catalysts. Sourcerock Group's team has been investing across the energy and industrial sectors since 1998, with a track record of growing and preserving capital. Their investment philosophy aligns interests with investors, focusing on capital discipline, durability of business models, and ESG considerations. Sourcerock Group's portfolio includes a mix of liquid equity instruments, targeting companies with high free cash flow, clean balance sheets, solid management teams, and attractive relative valuations. The firm is aware of macro regimes, including inflation, deflation, and ESG factors, and constructs portfolios with attention to near-term catalysts. Their investment process is agnostic to equity or commodity direction, with risk guidelines that aim to accommodate the volatility of the energy ecosystem without stifling the portfolio's return potential.

Investment Focus

• High free cash flow
• Clean balance sheets
• Solid management teams
• Capital discipline
• Durable business models
• Attractive relative valuations

Portfolio Companies