Energy Long, Celsius Short
Jump To
Those that have followed know that I run an Absolute Return model at Bustamante Capital LLC – we like making money in any market environment long or short.
This model allows me to be patient with conviction ideas long, like energy, then also to be short overvalued names like Celsius.
We’re going to break down Energy longs and the Celsius short in this post.
Energy Longs
I’ve like energy names really since the start of Q2 and there have been a few reasons why they’ve been, and continue to be, no-brainer layup longs.
Celsius Short
Part of the portfolio model I run for myself and clients is using an active long/short strategy within the core strategies to generate returns.
Think of this like having capital at work and being patient in quality ideas (like energy longs) and then being able to pick-off smaller risk returns to add to the overall portfolio revenues.
Celsius fit the bill on this and I released a one-pager to DeltaOne members on September 6. So let’s break this down a bit.
Final Word
I like to buy value and quality themes and sit back and wait because great ideas take time.
The energy names have a long way to go which is great for me, so on technical pullbacks I made add but this started months ago so we’ll have to see.
Next Lesson
Patience Pays and Stock Market Sentiment
GXO Logistics and Stock Market Sentiment
Ready for Take Off or Jet Lagged?
About the Author
Daniel Bustamante is the founder, managing partner, and CIO of Bustamante Capital L.L.C., a multi-strategy hedge fund management firm based in San Juan, Puerto Rico. He has over 10 years of experience in the financial industry, specializing in equities, futures, and event-driven trading strategies.
He is also the founder of TheLongVol.com, a blog and newsletter that shares his insights on his investing process, travel, and other private investments. He has been featured in Bloomberg, Arizona Business Journal, Business Insider, Yahoo! Finance, Forbes, Seeking Alpha, and other publications over his career on Wall Street.
