Why Hedge Fund Hite Is Betting Against Fossil Fuels

James Jampel Hite discusses his investment strategy of shorting fossil fuels in the decarbonization trend, likening it to the decline of the horse and buggy industry. He explains the impact of COVID-19 on energy prices and the potential for counter-trend rallies. Hite emphasizes risk management and the importance of not relying on historical data for future predictions. He outlines his fund's strategy of shorting overvalued carbon assets while hedging with a diversified long basket.

What is the philosophy of HITE regarding the fossil fuel industry?

How does James Jampel Hite view the future of oil prices?

What are the risks associated with betting against a declining industry?

What is the significance of the term 'value trap' in the context of fossil energy?

What strategy does HITE employ to manage their positions in the carbon value chain?