Today is a very special episode. I have Toby Loftin, managing principal and founder (along with T Boone Pickens) of BP Capital Fund Advisors. We discuss the various parts of the energy sector like the value chain and end users. We also discuss his time with T. Boone Pickens. Below is an excerpt on his time with T. Boone Pickens.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
‘I tell you what, the first day I got there, April 1st 2010, I was sitting at my desk and I was nervous and he came walking down the hallway to start the first investment committee meeting. As I heard him coming I popped up out of my seat, he stopped and looked me in the eye and said “are you making any money yet?” I said sir I am getting to it. That is what we are doing, we are preparing. He is constantly thinking about ways to profit and he is extremely committed to winning. In business he is committed to studying the energy markets and knowing it better than anyone else. He calls it being an inch wide and a mile deep. That is sort of what we are. You know his view is to outwork the competition, not necessarily by the amount of hours you work but by deep familiarity by your domain of expertise. Always do your homework. Be a good teammate and partner. Do what you say you are going to do. Trust your teammate and work together. It all comes together. Its like the fruit of the labor when it is genuine and that is how I describe Boone and the firm. He is also a great storyteller. You have probably seen him in different venues and man he can tell a story. He can deliver it with the best of them. He is also a great joke teller which he tells on air sometimes. In the office he is hilarious. He is better than anyone I know in terms of telling a joke. Some of the quotes he said that I love he said over the years. You can be “dead right and dead”. So timing and your level of exposure is crucial. The other one I love is “the best time to plant a tree was 20 years ago but if you didn’t the second best time to plant a tree is now.” So in other words start early and build carefully. That is what we have been doing for the last couple of years at Twinline and the new RIA, called BP Capital Fund Advisors.’
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1:36 – How did you get started in the industry and what caught your interest?
3:38 – So you worked alongside T Boone Pickens at BP Capital, how was that experience and what are some key lessons you learned from him?
5:53 – How would you define and characterize your investment philosophy?
8:07 – How would you define and manage risk?
11:35 – What is BOON and how are you guys building a better energy ETF for investors?
15:45 – What is the problem with the other energy ETFs and how does BOON address those issues?
17:47 – Can you describe to me the energy value chain and the misconceptions?
21:40 – Can you talk more about the demand side and the companies you look for in the demand side?
24:40 – What are your favorite books?
25:57 – Closing thoughts
Enjoy and thanks for the listen!