The Opportunity
The best dislocation investments show a investor lack of interest coupled with attractive valuations and positive underlying fundamentals. Finally, they require an event or catalyst that will change the narrative around the sector/companies and encourage investors to return to the space.
I will explain below why I believe that as we enter 2020, crude and product tankers are in that rare moment where these factors are lining-up attractively and present a strong investment opportunity.
The Massive Caveat Emptor
Shipping is a terrible industry to invest in. It is a cyclical business with high