Brazos Fund SP
The primary investment objective of the Fund is to preserve capital and seek maximum, long-term capital appreciation commensurate with reasonable risk. For these purposes, risk is defined as the probability of permanent loss of capital, rather than price volatility.
In order to achieve the Investment Objective, the Investment Manager uses a discretionary approach to capture opportunities mainly in natural resources and commodities space.
The Fund seeks to invest primarily in long and occasionally short opportunities that the Investment Manager believes exhibit significant valuation discrepancies between current trading prices and intrinsic values, often with a catalyst for value recognition. In order to identify such investment opportunities and value propositions, the Investment Manager takes into consideration, among others:
a) quality and value of underlying assets and businesses of the invested companies;
b) pricing forecasts of commodities or products that the invested companies are exposed to; and
c) valuation and sentiment of broader capital markets and economy.
Occasionally, the Fund may also pursue event-driven opportunities with activist strategies, which seek to proactively effectuate corporate initiatives in a shareholder-friendly manner. The Investment Manager may also explore merger, acquisition and divestiture opportunities that the Investment Manager believes create value for shareholders via proactive interactions and engagements with invested companies and industry participants. In these investments, the Investment Manager will consider the target’s liquidity risk arising from periodic trading restrictions against its profit potential.
Mr. Zhai is the Director of the Investment Manager. He has over 10 years’ global financial investment experience specializing in energy and natural resources sector. Prior to managing the Fund, Mr. Zhai served as the Executive Director and Head of Asia Oil and Gas in Morgan Stanley. Mr. Zhai has developed extensive connections with industry leaders over the years during his professional progression at UBS AG from 2008 to 2014. Mr. Zhai received his Master of Petroleum Engineering from Texas A&M University, the United States in 2016, and his Bachelor of Arts from Yale University in 2007. He is a member of the Society of Petroleum Engineers (SPE).