Bison identifies areas of the energy market where a dislocation exists- where there is an inefficiency in an otherwise efficient space and where other, more institutional-like investors, have turned their back.
Fundamental to Bison's investment approach are pricing and value.
Pricing: if the price is low enough to create a substantial margin of safety, then the security meets our criterion of investment.
Value: buying securities at discount to their value to a private owner leads to better returns.
The bison will turn into a storm rather than drifting with it and, unlike other animals, navigate through it quicker.
In a storm, one tends to do what the other is doing and behavior becomes irrational. Bison Interests believes if you, as Rudyard Kipling puts it, can "keep your head when all about you are losing theirs...", you can achieve differentiated returns in the marketplace.
Bison identifies compelling investment opportunities when there is a dislocation in the energy market- a storm.
An investor sees a crowded landscape in the energy space with enormous amounts of money chasing similar looking deals in the private space and household names in the public space, lacking the discipline to avoid a reaction to short term oil prices or stock prices.
Bison offers this investor a differentiated path to earn better returns in an energy investment by avoiding the crowd mentality and remaining focused on a company's balance sheet, management, and assets.
Bison invests in the energy space and is focused on areas of the market where others aren't looking. As hundreds of billions of dollars are deployed in the energy market, asset prices are inflated, competition increases, and an already cyclical market becomes even more sensitive. Bison avoids the herd mentality and seizes opportunities where there is a dislocation, or inefficiency, in the energy market.