Summary
- FILL invests in global energy producers that are engaged in oil, gas, and coal.
- The fund likely faces terminal decline from the 2030s onward, but the speed of the decline is difficult to predict.
- In any case, it makes sense that the decline will not be sudden and abrupt, but take effect over several decades.
- The market's pricing of FILL is likely in the pessimistic category on the potential timeline of terminal decline.
- Therefore, I think that investors should pick up a healthy long-term IRR from present prices, in spite of the real risk of terminal decline.
For further details see:
FILL: Global Energy Producers Are Likely Undervalued