Petrocapita is built around the core premise that the world is in a bull market in commodities driven by inflation and increasing demand and, accordingly, that investments with direct or indirect exposure to commodities in a politically stable environment such as Canada will provide above average returns.
Our approach is value investing informed by the Austrian School of Economics - value driven at the investment selection level with analysis based on the Austrian school of economics at the macro level to provide insight into trends. We match sound macro-economic thinking with sound operational strategies to generate long-term returns by finding asset classes with:
- Strong macro drivers - favorable supply/demand situation
- Margin of safety – low asset prices or ability to acquire cash flow cheaply
Petrocapita Income Trust was designed to fill the niche formerly occupied by the public energy income trusts and is building a portfolio of conventional heavy oil production assets with a focus on low cost acquisition of cash flow. Petrocapita Income Trust was created to allow investors to add professionally managed energy assets directly to their portfolios without the need to take on the complex responsibilities of ownership themselves. Petrocapita is eligible for all registered plans including RRSPs and TFSAs. Petrocapita Income Trust is structured it to provide a manageable unit size for investors and it carries 10.25% interest paid quarterly with annual profit participation.