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Jennifer Warren
Jennifer Warren

ME AND MY MONEY

Energy analyst tilts portfolio toward oil and gas plays Add to ...

Jennifer Warren

Occupation

Researcher/analyst

The portfolio

Includes shares in Apache Corp., Valero Energy Corp., Hennessy Gas Utility Index Fund and Hannon Armstrong Sustainable Infrastructure Capital Inc.

The investor

For the past nine years, Jennifer Warren has researched energy trends and sustainability issues, authoring articles on these topics for publications such as the Far Eastern Economic Review, Economist Intelligence Unit and Energy Trends Insider. She has a master’s degree from the London School of Economics.

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How she invests

Her portfolio is diversified across bonds, commodities and stocks. The stocks are spread over different industries and geographic regions but have a tilt toward energy and sustainability plays, an area where Ms. Warren feels her energy expertise can be put to use selecting investments.

Apache Corp.’s “smart asset mix” includes North American shale properties and liquefied natural gas (LNG) opportunities. Management is sensitive to environmental issues and focused on pruning worldwide holdings down to a core group poised to deliver production growth. Proceeds from the asset sales are being directed toward strengthening the balance sheet and funding share buybacks.

Valero Energy Corp. is a refiner that has the capacity to handle “the increasing production of light, sweet crude oil coming from U.S. shale oil fields.” It is also in a position to increase exports of refined products to Latin America.

The Hennessy Gas Utility Index Fund provides broad exposure to natural gas firms. She expects the demand for natural gas to increase, and likes “the income and growth potential that the fund has consistently proven.”

Best move

Buying shares in Hannon Armstrong Sustainable Infrastructure Capital Inc., a specialty finance company that provides capital for environmentally friendly infrastructure projects. Ms. Warren likes the combination of “strong dividend and growth potential” and management’s focus on resource-sustainability issues, such as water recycling.

Worst move

Selling Hannon Armstrong when it dipped and repurchasing it at a higher price.

Advice

Diversify across asset mixes and sectors. Pay attention to economic fundamentals, the business climate and overarching trends. Seek realistic, steady returns. Know your investment comfort zone.

Want to share your strategies? E-mail mccolumn@yahoo.com

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