| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.2% | - | - |
Bison Energy Opportunity Fund performed well in Q1 2026, driven by growing market recognition of portfolio company fundamentals and a boost from the Strait of Hormuz closure that sparked the largest oil market supply disruption in history. The manager believes higher oil prices are yielding increased profits for producers, but valuations don't reflect the severity or likely duration of the disruption. The market is also underappreciating oilfield service companies, which provide rigs, equipment, and crews for incremental production. The fund has increased exposure to high-quality, asset-heavy businesses across the oil value chain that trade at large discounts to replacement cost while generating substantial free cash flow. Ensign Energy Services exemplifies this approach as one of the fund's largest holdings. The drilling contractor benefits from a dominant California position where policy has shifted supportively, plus Venezuela exposure. With only seven weeks since the disruption and historical rig additions peaking 40-70 weeks after oil price increases, the manager sees substantial upside in what may be the early stages of the next oil bull market cycle.
Higher oil prices from the Strait of Hormuz disruption create opportunities in undervalued, asset-heavy businesses across the oil value chain, particularly oilfield service companies that benefit with a lag from increased drilling activity.
The manager believes they are in the early stages of what may be the next leg of the oil bull market cycle, with substantial upside remaining in oilfield service companies like Ensign as drilling activity increases.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 24 2026 | 2026 Q1 | ESI.TO | Cyclical, Drilling, energy, oil, Oilfield Services, value | ESI.TO | Bison outperformed in Q1 2026 as the Strait of Hormuz closure created the largest oil supply disruption in history. The manager sees substantial upside in undervalued oilfield service companies like Ensign Energy Services, which benefit with a lag from higher oil prices through increased drilling activity, improved utilization, and stronger day rates. |
| Jan 16 2026 | 2025 Q4 | OIH, PSCE, XLE, XOP | cycle, energy, Natural Gas, oil, small cap, underinvestment, value | - | Bison targets undervalued oil and gas equities at a cyclical bottom. Structural underinvestment since 2014 combined with growing demand from AI data centers and developing countries creates supply-demand imbalance. Portfolio trades at deep discounts with 20%+ FCF yields expected, offering significant upside as the cycle turns while providing downside protection through reserve value discounts. |
| Dec 29 2025 | 2025 Q3 | - | E&P, energy, Natural Gas, oil, small caps, Upstream, value | - | Bison targets deeply undervalued oil and gas companies amid structural sector underinvestment and growing global demand. The fund has outperformed benchmarks by focusing on quality assets trading at steep discounts to reserves with high FCF yields. Tight inventories and emerging AI/LNG demand catalysts support bullish outlook for energy equities. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
OilThe Strait of Hormuz closure in March sparked the largest oil market supply disruption in history, driving higher oil prices. The manager believes the market is underappreciating the severity and likely duration of higher oil prices, creating opportunities across the oil value chain. |
Oil Supply Disruption Strait of Hormuz WTI Producers |
Oilfield ServicesOilfield service companies are a lagging beneficiary of higher oil prices, providing rigs, equipment, and crews needed for incremental production. The manager sees substantial upside as they are in the early stages of what may be the next leg of the oil bull market cycle. |
Oilfield Services Drilling Rigs Equipment Utilization | |
DrillingDrilling companies benefit with a lag when oil prices rise, typically seeing rig additions peak between the 40th and 70th week after price increases. Currently only seven weeks removed from the Strait of Hormuz disruption, suggesting early stages of a potential major upcycle for drilling activity. |
Drilling Rig Additions Utilization Day Rates Upcycle | |
| 2025 Q4 |
Live SportsMario Gabelli emphasizes live entertainment and sports as major investment themes, citing massive viewership numbers and global interest. He recommends multiple sports-related investments including Atlanta Braves Holdings, Madison Square Garden Sports, Manchester United, and Rogers Communications for their sports assets. |
Sports Entertainment Media Valuation |
MediaGabelli discusses media companies including Fox and Versant Media Group as attractive investments. He highlights Fox's sports broadcasting rights and Versant's strong EBITDA generation potential after being spun off from Comcast. |
Broadcasting Content Streaming Spinoffs | |
Natural GasNational Fuel Gas is recommended based on its strategic gas reserves in the Appalachian Basin and regulated utility business. Gabelli notes that natural gas provides 40% of U.S. electric power and the company's reserves are underappreciated by the market. |
Utilities Energy Infrastructure Reserves | |
AIGabelli acknowledges AI as a transformative force but warns of potential market corrections similar to historical manias. He expresses concern about leveraged ETFs, prediction markets, and other market mechanics that could accelerate any AI-related selloff. |
Technology Valuations Risk Correction | |
| 2025 Q3 |
OilOil demand continues to grow at 1% annually driven by developing countries industrialization, while global investment has declined 35% since 2014. US inventories are at ten-year lows and global days of supply remain below long-term averages, creating upside risk from any supply disruption. |
WTI Crude Inventories Supply Demand |
Natural GasAI data centers and LNG facility buildouts are expected to significantly increase US natural gas demand. The forward curve appears to be factoring in these demand elements, with portfolio companies expected to receive substantially higher cash flows from improved local realized pricing. |
LNG Data Centers Feed Gas AECO Pricing | |
Energy TransitionWhile the energy transition continues, reduced poverty in developing countries is driving increased oil consumption per capita. The gap between US consumption at 917 gallons per person versus China at 140 and India at 51 gallons per person will narrow as these countries industrialize. |
Developing Countries Per Capita Industrialization Growth Consumption | |
ValueBison's portfolio trades at 1-4x EBITDA versus energy indices at 3-8x EBITDA, with 0.4-0.6x proved reserve value versus indices at 0.5-2x+. The portfolio offers 15-40% FCF yields compared to 5-15% for energy indices, providing substantial discount to public and private comparables. |
EBITDA FCF Yield Reserve Value Discount Comparables |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 24, 2026 | Fund Letters | Bison Energy Opportunity Fund | ESI.TO | Ensign Energy Services | Oil & Gas Drilling | Oil & Gas Drilling | Bull | New York Stock Exchange | asset value, California, Cyclical, debt reduction, Drilling contractor, Energy Services, oilfield services, Replacement Cost, Rig Utilization, Venezuela | Login |
| TICKER | COMMENTARY |
|---|---|
| ESI.TO | Ensign is an international drilling contractor with operations focused primarily in the U.S. and Canada, along with additional international exposure. Ensign holds a dominant position in California, where policy has recently shifted in a more supportive direction for local production. Ensign also has exposure to increased drilling activity in Venezuela, where it already has rigs operating. Any increase in Ensign's cash flow is likely to be directed toward further debt reduction, followed by share repurchases and ultimately dividends. Despite a multi-year downturn in drilling activity, the company has steadily paid down debt. Industry estimates suggest that a modern triple rig costs approximately C$35 million to build, while singles and doubles are conservatively valued at around C$10 million. Ensign's fleet of 92 triples and 94 singles/doubles implies a replacement cost of approximately C$4.1 billion. After adjusting for net debt and shares outstanding, this equates to an estimated replacement value of $17.4 per share versus a current share price of $3.5. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
