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1.25 MB
Extraction Summary
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People
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Organizations
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Locations
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Events
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Relationships
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Quotes
Document Information
Type:
Financial white paper / investment report
File Size:
1.25 MB
Summary
This document is page 15 of a confidential 'Global Utility White Paper' produced by Electron Capital Partners, LLC, specifically marked for the exclusive use of Jeffrey Epstein. It analyzes the underperformance of the Utilities sector compared to other global sectors between 2009 and 2012, citing factors like the Fukushima disaster, US shale gas production, and European political interference. The report argues that the sector is poised for a sharp outperformance rally due to market rotation.
People (1)
| Name | Role | Context |
|---|---|---|
| Jeffrey Epstein | Recipient |
Document marked 'For exclusive of Jeffrey Epstein' in the footer
|
Organizations (3)
| Name | Type | Context |
|---|---|---|
| Electron Capital Partners, LLC |
Company name listed in footer
|
|
| Bloomberg |
Cited as source for charts and tables; 'Bloomberg Finance L.P.' mentioned in chart copyright
|
|
| MSCI |
Cited in chart title 'MSCI World Utility' and table 'MSCI Global Sectors'
|
Relationships (1)
Document footer reads 'For exclusive of Jeffrey Epstein'
Key Quotes (3)
"It is hard to imagine a more perfect storm for the global utility sector than that which has played out over the past 4 years."Source
HOUSE_OVERSIGHT_024216.jpg
Quote #1
"Potential Exists for Sharp Outperformance"Source
HOUSE_OVERSIGHT_024216.jpg
Quote #2
"For exclusive of Jeffrey Epstein"Source
HOUSE_OVERSIGHT_024216.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,371 characters)
Global Utility White Paper
CONFIDENTIAL
CONFIDENTIAL
MSCI World Utility vs MSCI World Price Spread
(90-Day MA)
[Chart showing market trends from 1995 to 2013]
[Annotations on chart: utility underperformed 2.3yrs by 35%, utility underperformed 1.3yrs by 37%, utility underperformed 2.3yrs by 10%, utility underperformed 4.0yrs by 67%]
[Chart Footer: 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013]
[Chart Sub-footer: MXWO0UT Index (MSCI World Utilities Sector Index) Manually Global Spread Weekly Copyright 2013 Bloomberg Finance L.P. 21-Feb-2013 10:51:49]
Source: Bloomberg
(90-Day MA)
[Chart showing market trends from 1995 to 2013]
[Annotations on chart: utility underperformed 2.3yrs by 35%, utility underperformed 1.3yrs by 37%, utility underperformed 2.3yrs by 10%, utility underperformed 4.0yrs by 67%]
[Chart Footer: 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013]
[Chart Sub-footer: MXWO0UT Index (MSCI World Utilities Sector Index) Manually Global Spread Weekly Copyright 2013 Bloomberg Finance L.P. 21-Feb-2013 10:51:49]
Source: Bloomberg
Price
MSCI Global Sectors 1/1/2009 12/31/2012 Performance
Consumer Discretionary 68.5 132.4 93%
Information Technology 54.2 96.9 79%
Materials 146.1 237.2 62%
Industrial 101.4 155.8 54%
Consumer Staples 104.7 160.5 53%
Health Care 89.1 128.4 44%
Energy 181.9 238.9 31%
Financials 63.0 82.0 30%
Telecom 51.0 56.9 12%
Utilities 113.4 100.9 -11%
Source: Bloomberg
MSCI Global Sectors 1/1/2009 12/31/2012 Performance
Consumer Discretionary 68.5 132.4 93%
Information Technology 54.2 96.9 79%
Materials 146.1 237.2 62%
Industrial 101.4 155.8 54%
Consumer Staples 104.7 160.5 53%
Health Care 89.1 128.4 44%
Energy 181.9 238.9 31%
Financials 63.0 82.0 30%
Telecom 51.0 56.9 12%
Utilities 113.4 100.9 -11%
Source: Bloomberg
• Reasons for Underperformance
Much of this recent underperformance can be explained by investors’ textbook preference, coming out of recession, to add high-beta stocks and shed low-growth utilities. This was exacerbated by:
o soft power demand growth (particularly in Europe);
o generation overcapacity;
o delays in capital spending;
o lower commodity prices (particularly as a result of US shale gas production);
o central banks’ quantitative easing;
o political interference (notably in Europe);
o high debt loads;
o the Fukushima nuclear disaster in Japan; and
o concerns about interest rate rises from today’s very low levels.
It is hard to imagine a more perfect storm for the global utility sector than that which has played out over the past 4 years.
o soft power demand growth (particularly in Europe);
o generation overcapacity;
o delays in capital spending;
o lower commodity prices (particularly as a result of US shale gas production);
o central banks’ quantitative easing;
o political interference (notably in Europe);
o high debt loads;
o the Fukushima nuclear disaster in Japan; and
o concerns about interest rate rises from today’s very low levels.
It is hard to imagine a more perfect storm for the global utility sector than that which has played out over the past 4 years.
• Potential Exists for Sharp Outperformance
Globally or regionally, it is not unusual to find long and/or sharp periods of utility underperformance (as with the current record period). During such periods, when combined with wholesale shorts and market underweighting, the sector becomes poised for extended outperformance rallies. This results from fundamental investors (both long/short and long-only) rotating into the sector en masse, bidding up the best value and growth utilities and underweighting or shorting utilities with poor business
15
Electron Capital Partners, LLC
For exclusive of Jeffrey Epstein
HOUSE_OVERSIGHT_024216
Electron Capital Partners, LLC
For exclusive of Jeffrey Epstein
HOUSE_OVERSIGHT_024216
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