Shawn Darby

"Sustainably high natural gas prices... pushes through into fertilizer prices and the resetting of fertilizer prices works through the global food chain for a good 12 to 24 months." The closure of the Strait of Hormuz disrupts both natural gas (a key input for nitrogen fertilizers) and physical fertilizer shipments (1/3 of global trade). This creates a massive supply shock that will drive up prices and margins for North American fertilizer producers who do not face the same geopolitical supply chain risks. LONG North American fertilizer producers who benefit from higher global prices and constrained international supply. Demand destruction if farmers cannot afford higher fertilizer prices; swift reopening of the Strait of Hormuz normalizing global trade routes.

"Old economy areas of the tech sector which is hardware... demand for routers and various other parts of the tech chain have actually been also extremely strong because there's been incentives in the United States given the depreciation advantages." While the market hyper-focuses on AI and software, traditional tech hardware is seeing strong fundamental demand driven by US tax incentives and corporate upgrade cycles, offering better valuations and under-the-radar earnings momentum. LONG legacy tech hardware companies as they offer value and strong earnings momentum supported by US capex incentives. Corporate IT budget cuts due to macro uncertainty; supply chain disruptions from the Middle East conflict affecting component availability.

"The biggest loser out of the higher energy prices is the global consumer... consumer discretionary is going to be a very poor area to be in. Notably those bigger ticket items like autos." Spiking gasoline prices and broader inflation from the oil shock will squeeze consumer wallets, leading to delayed or canceled purchases of big-ticket discretionary items, particularly combustion engine vehicles. SHORT consumer discretionary and legacy automakers as input costs rise and consumer demand falls. A rapid diplomatic resolution to the Middle East conflict causing oil prices to crash, relieving inflationary pressure on consumers.

"The biggest loser out of the higher energy prices is the global consumer... consumer discretionary is going to be a very poor area to be in. Notably those bigger ticket items like autos." Spiking gasoline prices and broader inflation from the oil shock will squeeze consumer wallets, leading to delayed or canceled purchases of big-ticket discretionary items, particularly combustion engine vehicles. SHORT consumer discretionary and legacy automakers as input costs rise and consumer demand falls. A rapid diplomatic resolution to the Middle East conflict causing oil prices to crash, relieving inflationary pressure on consumers.

"Old economy areas of the tech sector which is hardware... demand for routers and various other parts of the tech chain have actually been also extremely strong because there's been incentives in the United States given the depreciation advantages." While the market hyper-focuses on AI and software, traditional tech hardware is seeing strong fundamental demand driven by US tax incentives and corporate upgrade cycles, offering better valuations and under-the-radar earnings momentum. LONG legacy tech hardware companies as they offer value and strong earnings momentum supported by US capex incentives. Corporate IT budget cuts due to macro uncertainty; supply chain disruptions from the Middle East conflict affecting component availability.

"Sustainably high natural gas prices... pushes through into fertilizer prices and the resetting of fertilizer prices works through the global food chain for a good 12 to 24 months." The closure of the Strait of Hormuz disrupts both natural gas (a key input for nitrogen fertilizers) and physical fertilizer shipments (1/3 of global trade). This creates a massive supply shock that will drive up prices and margins for North American fertilizer producers who do not face the same geopolitical supply chain risks. LONG North American fertilizer producers who benefit from higher global prices and constrained international supply. Demand destruction if farmers cannot afford higher fertilizer prices; swift reopening of the Strait of Hormuz normalizing global trade routes.

"Sustainably high natural gas prices... pushes through into fertilizer prices and the resetting of fertilizer prices works through the global food chain for a good 12 to 24 months." The closure of the Strait of Hormuz disrupts both natural gas (a key input for nitrogen fertilizers) and physical fertilizer shipments (1/3 of global trade). This creates a massive supply shock that will drive up prices and margins for North American fertilizer producers who do not face the same geopolitical supply chain risks. LONG North American fertilizer producers who benefit from higher global prices and constrained international supply. Demand destruction if farmers cannot afford higher fertilizer prices; swift reopening of the Strait of Hormuz normalizing global trade routes.

"The biggest loser out of the higher energy prices is the global consumer... consumer discretionary is going to be a very poor area to be in. Notably those bigger ticket items like autos." Spiking gasoline prices and broader inflation from the oil shock will squeeze consumer wallets, leading to delayed or canceled purchases of big-ticket discretionary items, particularly combustion engine vehicles. SHORT consumer discretionary and legacy automakers as input costs rise and consumer demand falls. A rapid diplomatic resolution to the Middle East conflict causing oil prices to crash, relieving inflationary pressure on consumers.