HOUSE_OVERSIGHT_024217.jpg
1.16 MB
Extraction Summary
1
People
4
Organizations
2
Locations
1
Events
1
Relationships
4
Quotes
Document Information
Type:
Financial white paper / investment report
File Size:
1.16 MB
Summary
Page 16 of a confidential 'Global Utility White Paper' produced by Electron Capital Partners, LLC, specifically marked for the exclusive use of Jeffrey Epstein. The document analyzes market trends, specifically the performance of global utilities following underweighting periods, drawing comparisons to the dotcom bust and the Japanese market to highlight a potential 'massive alpha opportunity.' It utilizes data from Bank of America Merrill Lynch and Bloomberg.
People (1)
| Name | Role | Context |
|---|---|---|
| Jeffrey Epstein | Recipient/Client |
Watermark indicates the document is 'For exclusive of Jeffrey Epstein'
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Electron Capital Partners, LLC |
Listed in footer
|
|
| Bank of America Merrill Lynch |
Cited as source for the chart
|
|
| Bloomberg |
Cited as source for the chart
|
|
| MSCI |
Referenced in chart title (MSCI World Utility vs MSCI World)
|
Timeline (1 events)
Relationships (1)
Watermark stating 'For exclusive of Jeffrey Epstein' on a confidential white paper from the firm.
Key Quotes (4)
"For exclusive of Jeffrey Epstein"Source
HOUSE_OVERSIGHT_024217.jpg
Quote #1
"potential massive alpha opportunity"Source
HOUSE_OVERSIGHT_024217.jpg
Quote #2
"The last time we saw underperformance anywhere close to today’s magnitude was during the 3-year run-up to the dotcom bust"Source
HOUSE_OVERSIGHT_024217.jpg
Quote #3
"rising European sovereign yields"Source
HOUSE_OVERSIGHT_024217.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (1,898 characters)
Global Utility White Paper
CONFIDENTIAL
CONFIDENTIAL
models/prospects. This can be triggered by improving sector fundamentals, better data points, or conversely by events that instead lower investors’ perception of economic growth prospects (e.g., policy errors, rising European sovereign yields, higher commodity prices, etc.).
As noted above (page 5), each time the sector’s underweighting reaches 1 standard deviation below the mean, over the next 24 months global utilities rise by 38% on an absolute basis and outperform the global broad market by 20%, on average (see graph below).
Subsequent MSCI World Utility vs MSCI World
performance post 1σ underweights
performance post 1σ underweights
[Chart showing bar graph comparing MSCI World vs MSCI World Utility performance over 3 mos, 6 mos, 9 mos, 12 mos, 18 mos, 24 mos. Red line indicates Out/underperformance. Callout box points to 24 mos bar: "Cumulative outperformance". Data points shown: 2.4%, 8.1%, 8.0%, 6.6%, 12.4%, 20.4%]
Source: Bank of America Merrill Lynch, Bloomberg
When these outperformance rallies occur, the potential massive alpha opportunity can be substantially greater than the return from a fund’s net position.
As examples, we highlight the lessons from the dotcom period (second only to today’s record underperformance) and lessons from Japan (given the deleveraging environment of today).
o Post-Dotcom Rallies
The last time we saw underperformance anywhere close to today’s magnitude was during the 3-year run-up to the dotcom bust (see graph below) as investors grabbed for growth in the “new economy”. During the run-up (Jan 97-Jan 00), tech and telecom were the best-performing sectors, +322% and +162%, respectively. The global utilities sector was the second-worst-performing global sector, +12% and in line with the +9% worst-performing materials sector.
16
Electron Capital Partners, LLC
For exclusive of Jeffrey Epstein
HOUSE_OVERSIGHT_024217
Electron Capital Partners, LLC
For exclusive of Jeffrey Epstein
HOUSE_OVERSIGHT_024217
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document