North American Shale Energy

Managed by Split Rock

4.0% Last 30 days 1.8% Last 90 days -12.9% Last 365 days -1.04 Sharpe Ratio -19.8% Max Drawdown

North American Shale Energy

Managed by Split Rock

4.0% Last 30 days 1.8% Last 90 days -12.9% Last 365 days -1.04 Sharpe Ratio -19.78 Max Drawdown
Risk score
Strategy Stocks
AUM fee 1.0%
Requirements
• Investment minimum: $20,000
• Margin account
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Split Rock Private Trading & Wealth Management monitors, evaluates, and then invests in companies with significant exposure to the Bakken formation of the Williston Basin, as well as other major U.S. oil and natural gas shale deposits. These include Marcellus, Utica, Eagle Ford, Green River, and Haynesville.

Research

We begin by analyzing all publicly traded companies that have exposure to major shale deposits. We then screen stocks based on fundamental properties, and select equities with the desired statistics and perceived growth potential. We conclude by cross checking our research with other well respected analysts’ recommendations before we make our final selections. Data sources include, but are not limited to Standard & Poors, Morningstar, Kwanti and CNBC.

Approach

Our strategy is driven primarily by fundamental analysis. We tend to favor companies with consistent growth, stable earnings and dividends, limited debt, low P/E multiples and strong cash flows. We supplement our research with technical analysis that helps to identify trends. In this portfolio, several companies selected might be in their initial growth stage, in which case we invest based on our analysis of growth potential relative to regional peers.

Allocation discipline

We typically have 50 or fewer holdings. Each individual stock usually represents between 2 to 15% of the portfolio. Rebalancing is conducted to make either tactical adjustments or based on stock performance.

Sell discipline

Our sell discipline is based on many factors including both strategic and tactical adjustments to the portfolio, as well as our ongoing fundamental and technical analysis.

Exceptions

Split Rock may invest in non-shale deposit related energy plays in the event of any unforeseen political, environmental or other events that may negatively affect shale operation and production.

All performance information on this page is based on the performance of the Portfolio Manager’s account. Client performance may differ. This information was calculated on December 15, 2017.

Daily returns
Performance
S&P 500 Energy ETF
S&P 500
Manager (net of fees )
Last 30 days 4.0% 4.3% 2.0%
Last 90 days 1.8% 7.0% 4.4%
Last 365 Days -12.9% 18.3% -10.1%
Since inception (Annualized) -0.6% 13.6% 0.1%
2017 (YTD) -11.9% 19.5% -8.8%
2016 29.8% 9.5% 24.9%
2015 -23.2% -0.7% -23.8%
2014 -3.1% 11.4% -10.6%
2013 18.6% 29.6% 23.9%
2012 -4.4% 13.4% 3.3%
Risk metrics (last 365 days)
S&P 500 Energy ETF
S&P 500
Manager (net of fees )
Volatility 13.7% 6.7% 13.0%
Sharpe Ratio -1.04 2.53 -0.88
Sortino Ratio -1.47 3.39 -1.36
Maximum Drawdown -19.8% -2.8% -19.0%
Value-at-risk (95%, 1 week) -3.2% -1.6% -3.0%
Additional metrics (last 365 days)
vs.S&P 500 Energy ETF
vs. S&P 500
Information Ratio -2.8% -0.4%
Alpha -32.67 -4.40
Beta 1.16 0.87
R-Squared 0.3% 0.7%
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About Split Rock

Split Rock Private Trading & Wealth Management is a registered investment adviser based in Minneapolis. Split Rock provides access to several specialized investment portfolios. They currently operate and manage an Equity Rotation portfolio that strives to identify and understand economic and business cycle conditions and allocate funds accordingly. Split Rock also manages a North American Shale Energy portfolio that seeks to invest into the Bakken and other various major U.S. Shale plays. It invests funds according to each individual company’s strength of position and growth potential within those shale deposits.

Investment process

Split Rock employs a top down, fundamentally driven approach to investing. Portfolios are adjusted on a regular basis depending on economic and geopolitical conditions.

Important Information

  1. Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.  
  2. All performance information on this page is based on the performance of the Portfolio Manager’s account, using the manager’s own funds. Portfolio Manager’s pre-IB Asset Management performance information may include performance of non-IB Asset Management client accounts. Performance of the Portfolio Manager's account is calculated by IB Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions and reflects the deduction of broker commissions. Manager returns include trades and positions that fail IB Asset Management's trading rules, as a result, actual client returns will differ. IB Asset Management advisory fees are simulated and applied retroactively to present the portfolio return "net-of-fees".
  3. None of the performance information displayed on this page is based on the actual performance of any IB Asset Management client account investing in this portfolio. The performance in an IB Asset Management client account invested in this portfolio may differ (i.e., be lower or higher) from the Portfolio Manager’s account performance based on any trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IB Asset Management account and reviewing their customized dashboard.
  4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to follow a particular portfolio. The minimum amount is determined by IB Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
  5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IB Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
  6. Benchmark returns displayed have been calculated by IB Asset Management using daily benchmark prices and do not include dividend income. More information here. For certain portfolios IB Asset Management uses an index as a benchmark, while for others it uses an investable exchange traded fund (ETF) as a benchmark. Index returns do not reflect the deduction of any management fees, transaction costs or expenses. Individuals cannot invest directly in an index. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.
  7. All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of IB Asset Management has been provided by the Portfolio Manager. IB Asset Management makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of IB Asset Management. Transaction history of Portfolio Managers is available upon request. Portfolio classifications are provided by IB Asset Management, and are intended to serve as a general guide.
  8. Not all transactions listed will appear in accounts due to IB Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.
  9. This portfolio was launched on IB Asset Management on December 28, 2011.
  10. The Portfolio Manager could use short selling to manage this portfolio. Short selling is more complex than simply owning securities, involves a high degree of risk, is highly speculative, and is not suitable for all investors. The risk of loss associated with short selling is virtually unlimited. Short selling may also involve additional expenses and risks, including hard-to-borrow stock charges and buy-in risk. You should only select a portfolio using short selling if you are comfortable with the level of risk involved in short selling.
  11. The Portfolio Manager could use borrowed funds or leverage to fund investments in this portfolio. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value. Leverage involves a high degree of risk, is highly speculative, and is not suitable for all investors. Leverage increases both the amount you may lose and the amount you may make in a portfolio, leading to higher returns in the case of favorable market movements but also larger losses under adverse market conditions. You may also incur additional expenses associated with borrowing funds. You should only select a portfolio using leverage if you are comfortable with the level of risk involved in using leverage.