- Hedge fund manager Harris Kupperman has seen his fund rise 535% since the start of 2019.
- His 142.9% gain last year, after fees, came in part because of his bets on energy stocks.
- Here are two of Kupperman’s favorite energy stocks — and why he says ESG funds are a sham.
Work is going well for Harris Kupperman — or “Kuppy” to his friends. The president of Praetorian Capital Management logged a 142.9% gain in 2021 and a 127.5% gain in 2020, after adjusting for fees.
In fact, Kupperman’s flagship fund was up 535% from its inception at the start of 2019 through 2021, while the S&P 500 rose about 80% in the same span.
A key reason why the Praetorian Capital Fund has succeeded is because of Kupperman’s exposure to the energy sector, which is up 45% in 2022. That outperformance comes as oil and gas prices have spiked and demand for fuel dramatically outpaces supply, especially as the invasion of Ukraine puts pressure on countries to stop importing energy from Russia.
The feverish oil rally is likely just getting started, Kupperman told Insider in a recent interview. The hedge fund manager said that years of massive underinvestment in fossil fuel infrastructure after campaigning by environmental advocates has — ironically — appeared to have caused a revival for the industry, to the point that an oil “supercycle,” where prices surge indefinitely, may now be inevitable.
“The price of oil is going higher because the world needs one million or two million barrels more each year,” Kupperman said. “And they don’t increase production — then oil’s going higher.”
Demand for oil will remain robust as both the world’s population increases and as living standards continue to rise, Kupperman said — regardless of what happens to the economy.
“If there’s a
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