The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Blue Tower Asset Management delivered 18.91% net returns in Q2 2026, bringing YTD performance to 20.84% net, driven primarily by gains in Enova International despite elevated volatility around its pending Grasshopper Bank merger. The manager built positions in Petrobras and SM Energy in Q1 as both portfolio hedges and standalone investments in the energy sector. The 2026 Iran War has disrupted oil flows through the Strait of Hormuz, but initial market buffers have prevented extreme price increases. These buffers included pre-war inventory builds, China drawing down its 1.4 billion barrel strategic reserve while reducing imports by 74% of the global crude trade decline, and alternative export routes through Saudi and UAE pipelines. However, these protections are nearing exhaustion. China is now removing refinery restrictions and resuming normal market participation, while global strategic reserves continue depleting. With fighting resumed after the collapsed ceasefire, the manager expects oil prices to rise significantly as supply-demand imbalances intensify. Energy E&P companies trade at historically cheap valuations with improved capital discipline, generating free cash flow for shareholders rather than destroying value through overinvestment. Growing AI data center demand is also increasing energy consumption, with facilities using on-site gas generation due to overburdened electric grids.
The fund generated strong Q2 2026 returns of 18.91% net driven by Enova International, bringing YTD gains to 20.84% net. The manager has positioned the portfolio with energy exposure through Petrobras and SM Energy as both a hedge against oil price spikes and an attractive standalone investment opportunity. The 2026 Iran War has disrupted oil flows through the Strait of Hormuz, but initial market buffers including pre-war inventory builds, China's strategic reserve drawdowns, and alternative export routes have prevented extreme price increases. These buffers are now nearing exhaustion, with China resuming normal import levels and global strategic reserves depleting. The manager expects oil prices to rise significantly as supply-demand imbalances intensify, making energy E&P companies attractive at current historically cheap valuations with improved capital discipline.
The manager believes the Iran crisis is far from over and will be difficult to fully resolve. With the ceasefire ended and fighting resumed, the inventory buffers that initially protected global oil markets from severe disruption are nearing exhaustion. China's strategic reserves are finite and the country is resuming normal market participation. Once global inventories are depleted, demand destruction through higher oil prices will be necessary to balance supply and demand, as there is insufficient new production capacity available in the short term to replace Hormuz traffic. The manager views this as creating continued upside for energy investments.
As of Jul 22, 2026
Andrew Oskoui, CFA, serves as portfolio manager and principal of Blue Tower Asset Management, having passed all three CFA levels on his first attempt. He holds a Bachelor of Science in Biomedical Engineering from Washington University in St. Louis and a Master's Degree in Chemistry from the University of Wisconsin-Madison. His investment experience includes research at YCG and managing an equity strategy for Allometric Research & Management. Prior to finance, Andrew led materials science research for Halcyon Molecular (a Founder's Fund portfolio company) and researched nanoparticle drug delivery for cancer therapies as an engineer for Covidien. Andrew supervises all firm activities and maintains the firm's independent, fee-only structure without control by large national firms.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The manager demonstrates moderate-high conviction through named, sized positions (Enova as largest holding and contributor, Petrobras and SM Energy as Q1 builds) with clear thesis articulation for each. The letter provides extensive fundamental analysis supporting the energy thesis with specific catalysts and timeframes. However, conviction is tempered by several factors: the energy positions are partially framed as hedges rather than pure conviction bets, they have underperformed YTD ('drag on performance'), and the portfolio appears diversified enough that energy represents a meaningful but not concentrated allocation. The manager uses declarative language ('we continue to believe,' 'I continue to believe') but acknowledges uncertainty around timing and volatility. The detailed 8-page analysis of oil market dynamics demonstrates deep conviction in the thesis, but the hedged positioning and acknowledgment of short-term underperformance prevents a score above 0.70.
Growth Outlook
Market outlook remains high conviction: Blue Tower repositioned for the Persian Gulf crisis by selling input-cost-sensitive names and adding oil producers Petrobras and SM Energy. The manager sees markets underestimating...
Risk Appetite
Risk appetite posture is very low conviction: Blue Tower repositioned for the Persian Gulf crisis by selling input-cost-sensitive names and adding oil producers Petrobras and SM Energy. The manager sees markets underestimating...
Capital Deployment
The manager deployed capital in Q1 by building positions in Petrobras and SM Energy, representing moderate deployment activity. However, no new deployment is described in Q2, and the letter focuses on holding existing positions through volatility rather than adding. The energy positions were established in the prior quarter and are now being held despite underperformance. No cash level changes are mentioned, and no new positions are discussed. The letter describes a 'hold and wait' posture for catalysts to materialize rather than active scaling or new deployment. This represents prior deployment activity with current monitoring, scoring in the low-positive range.
Forward Guidance
Forward guidance signal: Blue Tower repositioned for the Persian Gulf crisis by selling input-cost-sensitive names and adding oil producers Petrobras and SM Energy. The manager sees markets underestimating...
Language Signal
The letter contains meaningful bullish language around energy opportunities ('attractive investment,' 'excellent quarter,' 'transformative merger') but is heavily balanced with risk-focused language throughout. Extensive discussion of war, blockades, supply disruptions, inventory depletion, and volatility creates a cautious tone. Phrases like 'drag on performance,' 'elevated volatility,' 'nearing exhaustion,' and 'shortages that failed to occur...may still come to pass' add bearish framing. The net balance leans mildly positive due to the manager's conviction in the energy thesis and strong Q2 performance, but the risk language is substantial enough to prevent a higher score.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Blue Tower repositioned for the Persian Gulf crisis by selling input-cost-sensitive names and adding oil producers Petrobras and SM Energy. The manager sees markets underestimating...
Opportunity Density
The manager sees selective opportunities in specific areas, particularly energy E&P, which is described as 'an attractive investment on its own' trading at 'cheaper than historically' valuations. The letter notes that 'valuations of oil and gas companies are cheaper than they have been historically' against a backdrop where 'current US equity market is among the most expensive historically,' suggesting opportunities are concentrated rather than broad. The manager identifies specific catalysts and themes (Iran War disruption, improved E&P capital discipline, AI data center energy demand) but does not describe a rich, broad opportunity set across sectors. This reflects selective opportunity identification in defined areas rather than abundance.
Time Horizon
The manager demonstrates a multi-year investment horizon with willingness to hold through near-term volatility. For Enova, the manager states 'we should expect elevated volatility' until merger completion but maintains conviction in the transformative long-term impact. For energy positions, the manager is willing to hold through current underperformance ('drag on performance') based on a thesis that will take time to materialize as 'buffers are nearing exhaustion.' The letter discusses structural themes like EV adoption taking '12 to 16 years' and data center buildout taking 'years to occur.' However, the investment thesis is also catalyst-dependent (Iran War resolution, merger approval, inventory depletion), suggesting a 2-3 year rather than decade-plus horizon. The manager is patient but not indefinite, scoring in the moderate-high range.
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