Many people view the world of investing as a giant maze. With so many options and strategies, it can be difficult to know where to start. Fortunately, Fisher Investments has developed several informational and educational guides to help investors navigate the complexities of energy investing. In this article, we'll take a closer look at the range of energy investments available and the various strategies that can be employed when investing in energy-related securities.
Energy investments are a diverse sector of the global markets, comprising of both traditional and renewable sources. In the traditional energy sector, you'll find stocks of oil and gas companies as well as utilities, which generate electricity from a variety of sources. In the renewable energy sector, investments might include stocks of solar and wind power companies, biofuel producers, and other environmentally friendly energy sources.
One of the key strategies employed by Fisher Investments when investing in energy-related securities is to focus on the long-term prospects of the underlying investments. This means that Fisher Investments looks for energy investments with strong fundamentals and a long-term outlook for success. This can include investments in companies that are positioned to benefit from the long-term growth of the energy sector, such as companies involved in oil and gas exploration and production, or renewable energy producers.
Fisher Investments also looks for energy investments with attractive risk/return profiles. For example, Fisher Investments has been investing in NextEra Energy, Inc. (NYSE:NEE) since the third quarter of 2015. In Q4 2022, the hedge fund reported a total return of 10.3% on its NextEra Energy shares, which was significantly higher than the S&P 500's return of 4.9% during the same period. This demonstrates Fisher Investments' ability to identify attractive energy investments with attractive risk/return profiles.
Another strategy employed by Fisher Investments when investing in energy-related securities is to take advantage of market volatility. As stocks rallied from October's low, slowing inflation, modestly improving economic forecasts and better-than-expected European energy developments helped fuel a rally in energy stocks. This provided investors with an opportunity to buy energy-related securities at attractive prices, which Fisher Investments was able to capitalize on.
Another area of focus for Fisher Investments when investing in energy-related securities is to identify undervalued companies. For example, Fisher Asset Management recently reported a total return of 32.3% on its investments in Mammoth Energy Services Inc. (NASDAQ: TUSK). The company is focused on providing energy-related services and is undervalued compared to its peers. Fisher Investments was able to identify this opportunity and capitalize on it.
Finally, Fisher Investments also looks to invest in companies that are well positioned to benefit from the shift towards clean energy. For example, in January of 2021, the Edison Electric Institute (EEI) announced the appointment of Counsel and Executive Vice President of Clean Energy Emily Sanford Fisher. EEI said utilities were attractive investments last year and that they expect that trend to continue. This demonstrates Fisher Investments' ability to identify companies that are well positioned to benefit from the shift towards clean energy.
Investing in energy-related securities can be a complex endeavor, but Fisher Investments has the expertise and experience necessary to identify attractive investments and capitalize on them. Through its focus on identifying long-term prospects, attractive risk/return profiles, market volatility, undervalued companies, and companies well positioned to benefit from the shift towards clean energy, Fisher Investments is well equipped to help investors navigate the complexities of energy investing.
Whether you are an experienced investor or a novice, investing in energy-related securities can be a lucrative endeavor. By leveraging the expertise of Fisher Investments, you can access a range of investments and strategies that can help you capitalize on the opportunities available in the energy sector.
Fisher Investments is committed to providing investors with the tools and resources necessary to navigate the maze of energy investing. Through its educational guides, Fisher Investments helps investors understand the range of energy investments available, the various strategies that can be employed when investing in energy-related securities, and how to identify attractive investments and capitalize on them.
Fisher Investments also provides investors with the latest news and developments in the energy sector. Through its recaps of the biggest market, political, and economic news from the past week, Fisher Investments helps investors stay up to date on the current state of the energy markets. This enables investors to make informed decisions and take advantage of opportunities as they arise.
In addition to its educational resources and news recaps, Fisher Investments also offers a range of investment services and strategies. From portfolio management and asset allocation to risk management and tax optimization, Fisher Investments provides investors with a comprehensive suite of services and strategies to help them achieve their financial goals.
For investors looking to navigate the complexities of energy investing, Fisher Investments is an ideal partner. With its range of educational resources, news recaps, and investment services, Fisher Investments provides investors with the tools and expertise necessary to capitalize on the opportunities available in the energy sector.
Investing in energy-related securities can be a complex endeavor, but with the help of Fisher Investments, investors can confidently navigate the maze of energy investing and capitalize on the opportunities available in the sector.
