Introducing Octane Investments and the Octane All-Cap Value Energy ETF (OCTA)
Octane Investments has launched its first ETF, the Octane All-Cap Value Energy ETF (OCTA), focusing on undervalued energy stocks. The actively managed fund, listed on Nasdaq with a 0.30% net expense ratio, targets companies with market caps over $1 billion, low valuations relative to expected free cash flow, and strong balance sheets.
OCTA employs a proprietary 'decision tree' approach to select approximately 30 stocks with low P/E ratios and potential for strong total returns. The fund aims to capitalize on the current undervaluation of energy stocks due to factors such as fossil fuel divestment trends and the valuation gap between large- and small-cap equities.
Octane Investments sees OCTA as a solution for investors looking to increase energy exposure in diversified portfolios, balance large-cap-centric energy ETFs, and hedge against persistent inflation.
Octane Investments ha lanciato il suo primo ETF, l'Octane All-Cap Value Energy ETF (OCTA), focalizzandosi su azioni energetiche sottovalutate. Il fondo gestito attivamente, quotato su Nasdaq con un 0.30% di rapporto spese nette, punta a società con valutazioni di mercato superiori a 1 miliardo di dollari, basse valutazioni rispetto al flusso di cassa libero atteso e solidi bilanci.
OCTA utilizza un approccio proprietario chiamato 'albero decisionale' per selezionare circa 30 azioni con bassi rapporti P/E e potenziale per forti rendimenti totali. Il fondo mira a capitalizzare sull'attuale sottovalutazione delle azioni energetiche dovuta a fattori come le tendenze di disinvestimento dai combustibili fossili e il divario di valutazione tra azioni a grande e piccola capitalizzazione.
Octane Investments considera l'OCTA una soluzione per gli investitori che desiderano aumentare l'esposizione energetica nei portafogli diversificati, riequilibrare gli ETF energetici focalizzati sulle grandi capitalizzazioni e coprirsi contro l'inflazione persistente.
Octane Investments ha lanzado su primer ETF, el Octane All-Cap Value Energy ETF (OCTA), centrado en acciones energéticas infravaloradas. El fondo, gestionado activamente y cotizado en Nasdaq con una tasa de gastos netos del 0.30%, se enfoca en empresas con capitalizaciones de mercado superiores a 1 billón de dólares, valoraciones bajas respecto al flujo de caja libre esperado, y balances sólidos.
OCTA utiliza un enfoque propietario de 'árbol de decisiones' para seleccionar aproximadamente 30 acciones con bajos ratios P/E y potencial para altos retornos totales. El fondo busca capitalizar la actual infravaloración de las acciones energéticas debido a factores como las tendencias de desinversión en combustibles fósiles y la brecha de valoración entre acciones de gran y pequeña capitalización.
Octane Investments ve el OCTA como una solución para los inversores que buscan aumentar la exposición energética en carteras diversificadas, equilibrar los ETFs energéticos centrados en grandes capitalizaciones, y protegerse contra la inflación persistente.
옥타나 인베스트먼트는 옥타나 올캡 가치 에너지 ETF (OCTA)를 출범하였으며, 이는 저평가된 에너지 주식에 초점을 맞추고 있습니다. 액티브 매니지드 펀드로 0.30%의 순 비용 비율로 나스닥에 상장되어 있으며, 시장 시가총액이 10억 달러 이상인 기업을 대상으로 하고, 기대되는 자유 현금 흐름에 비해 낮은 평가와 안정적인 재무 상태를 가진 회사를 지향합니다.
OCTA는 약 30개 주식을 선택하기 위해 독자적인 '결정 나무 접근법'을 사용하며, 낮은 P/E 비율과 강력한 총 수익 잠재력을 지닌 회사들을 분석합니다. 이 펀드는 화석 연료 투자 철회 경향과 대형주와 소형주 간의 평가 격차와 같은 요인으로 인해 에너지 주식의 현재 저평가를 활용하고자 합니다.
옥타나 인베스트먼트는 OCTA가 분산 포트폴리오에서 에너지 노출을 증가시키고 대형주 중심의 에너지 ETF를 보완하며 지속적인 인플레이션에 대한 헷지를 찾는 투자자들에게 솔루션이 된다고 보고 있습니다.
Octane Investments a lancé son premier ETF, le Octane All-Cap Value Energy ETF (OCTA), qui se concentre sur les actions énergétiques sous-évaluées. Le fonds géré activement, coté sur le Nasdaq avec un taux de dépenses nettes de 0,30%, cible des entreprises ayant une capitalisation boursière supérieure à 1 milliard de dollars, des évaluations basses par rapport aux flux de trésorerie libres prévus, et des bilans solides.
L'OCTA utilise une approche propriétaire appelée 'arbre de décision' pour sélectionner environ 30 actions avec de faibles ratios C/B et un potentiel de rendements totaux élevés. Le fonds vise à tirer parti de la sous-évaluation actuelle des actions énergétiques en raison de facteurs tels que les tendances de désinvestissement dans les combustibles fossiles et l'écart de valorisation entre les actions à grande et à petite capitalisation.
Octane Investments considère l'OCTA comme une solution pour les investisseurs cherchant à augmenter leur exposition énergétique dans des portefeuilles diversifiés, équilibrer les ETF énergétiques axés sur les grandes capitalisations, et se couvrir contre l'inflation persistante.
Octane Investments hat seinen ersten ETF, den Octane All-Cap Value Energy ETF (OCTA), ins Leben gerufen, der sich auf unterbewertete Energieaktien konzentriert. Der aktiv verwaltete Fonds ist an der Nasdaq gelistet und hat eine netto Kostenquote von 0,30%. Er zielt auf Unternehmen mit Marktkapitalisierungen von über 1 Milliarde Dollar, niedrigen Bewertungen im Verhältnis zum erwarteten freien Cashflow und soliden Bilanzen ab.
OCTA verwendet einen proprietären 'Entscheidungsbaum-Ansatz', um etwa 30 Aktien mit niedrigen KGVs und Potenzial für hohe Gesamtrückflüsse auszuwählen. Der Fonds hat das Ziel, von der derzeitigen Unterbewertung der Energieaktien zu profitieren, bedingt durch Faktoren wie Trends zur Desinvestition fossiler Brennstoffe und die Bewertungsunterschiede zwischen Groß- und Kleinunternehmen.
Octane Investments sieht den OCTA als Lösung für Investoren, die ihre Energieexposition in diversifizierten Portfolios erhöhen, große energiespezifische ETFs ausbalancieren und sich gegen anhaltende Inflation absichern wollen.
- Launch of new ETF (OCTA) focusing on undervalued energy stocks
- Competitive net expense ratio of 0.30%
- Actively managed fund with high-conviction approach
- Targets companies with market caps over $1 billion and strong financials
- Potential use as inflation hedge and portfolio diversification tool
- None.
Insights
The launch of the Octane All-Cap Value Energy ETF (OCTA) represents an interesting development in the energy investment landscape, but its immediate impact on the broader market is likely to be Here's why:
- The ETF's focus on "under the radar" energy stocks with market caps over
$1 billion and low valuations relative to expected free cash flow could potentially uncover overlooked opportunities in the sector. - With a competitive net expense ratio of
0.30% , OCTA positions itself as an attractive option for investors seeking targeted exposure to value plays in the energy sector. - However, the fund's narrow focus and relatively small initial size mean it's unlikely to significantly move the needle for the broader energy sector or market in the short term.
The ETF's launch reflects broader trends in the market, including:
- The ongoing debate around fossil fuel investments and ESG considerations.
- A potential shift in investor sentiment towards value stocks in the energy sector.
- The growing popularity of actively managed ETFs as a way to potentially outperform broad market indices.
While OCTA's strategy of targeting undervalued energy stocks with strong balance sheets and free cash flow is sound in principle, its success will ultimately depend on the fund managers' stock selection skills and the broader performance of the energy sector. Investors should monitor the fund's performance and asset growth over time to gauge its impact and potential.
The launch of OCTA highlights several key market trends that investors should be aware of:
- A potential value opportunity in the energy sector, particularly among smaller and mid-sized companies that may be overlooked by larger, passive funds.
- The ongoing evolution of the ETF market, with a growing number of niche, actively managed products catering to specific investment themes or strategies.
- A possible shift in sentiment towards traditional energy stocks, which have been out of favor due to ESG concerns and past volatility.
OCTA's strategy of focusing on companies with strong free cash flow, solid balance sheets and a history of returning cash to shareholders aligns with current market preferences for financial stability and shareholder returns. This approach could appeal to investors seeking exposure to the energy sector without the volatility often associated with smaller, more speculative companies.
However, it's important to note that:
- The success of this strategy will depend on the continued demand for fossil fuels, which faces long-term challenges from the transition to renewable energy sources.
- The fund's concentrated portfolio of around 30 stocks may lead to higher volatility compared to broader energy sector ETFs.
- As an actively managed fund, OCTA's performance will be heavily dependent on the managers' stock selection skills.
While OCTA's launch is noteworthy for those interested in energy sector investments, its impact on the broader market is likely to be in the short term. Investors should view this as one of many options for gaining exposure to the energy sector, rather than a game-changing development for the industry as a whole.
Firm’s first offering focuses on “under the radar” energy stocks with market caps over
For Octane Investments, this is just the sort of confluence of factors for which their value-driven investment approach was created; and today the firm is marking the launch of their first investment vehicle: the Octane All-Cap Value Energy ETF (OCTA).
OCTA, which is listed on the Nasdaq with a competitive net expense ratio of
The approach underpinning the fund is built on Octane’s proprietary investment “decision tree” which in this case starts with the universe of energy stocks trading on
“The world needs traditional energy, yet the exposure that most investors have to the category is at historically low levels,” said David Allen, CFA, Managing Director at Octane Investments. “But the solution is not simply to allocate more to the biggest and broadest energy funds on the market as doing so only means investors will continue to miss out on the potential growth and yield to be found when taking a more robust, systematic approach to allocating to the sector.”
Allen added that there are a number of use cases he and his colleagues have identified for OCTA, including as a means to increase energy exposure in a diversified equity portfolio, to balance the large-cap-centric tilt of the most widely used energy ETFs on the market, and as a hedge against persistent inflation.
“Our active value approach is uniquely suited to the specific challenges and opportunities inherent in investing in the energy sector, particularly when viewed through the lens of today’s distorted markets. We are very pleased to be pulling back the curtain on the Octane philosophy and to be launching our first ETF in OCTA,” he added.
For more information on Octane Investments and OCTA, please visit https://octane.nyc/octa/.
About Octane
Octane Investments, Inc. is a privately held company founded in 2023 to invest in traditional energy companies. The founder, David Allen, CFA, is the Chair of the Board of Directors at the CFA Society of
* Gross expense ratio of
Important Information
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call (855) 574-5749 or visit our website at https://octane.nyc/octa/. Read the prospectus or summary prospectus carefully before investing.
Investments involve risk. Principal loss is possible. Redemptions are limited and often commissions are charged on each trade. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value.
Equity Market Risk. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value.
Energy Sector Risks: The market value of energy sector investments can fall due to factors like fluctuating energy prices, geopolitical events, stricter regulations, resource depletion, and environmental accidents. Market volatility is also influenced by large producers and buyers, and companies in this sector may incur high costs and debts for resource expansion.
Oil and Gas Sector Risks: Companies in the oil and gas sector are influenced by global energy prices, exploration and production costs, and are prone to environmental and legal risks. Ð'dValue Investing Risk. The value approach to investing involves the risk that stocks may remain undervalued. Value stocks may underperform the overall equity market if they remain out of favor in the market or are not undervalued in the market.
Concentration Risk. The Fund’s investments will be concentrated in energy-related industries. As a result, the value of Shares may rise and fall more than the value of shares that invest in securities of companies in a broader range of industries.
Foreign Securities Risk. Investments in securities of non-
New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions
Distributed by Foreside Fund Services, LLC
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801130172/en/
Press contact:
Chris Sullivan
Craft & Capital
chris@craftandcapital.com
Source: Octane Investments, Inc.
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