Encompass Capital Advisors LLC is a New York–based hedge fund and registered investment adviser founded in February 2012 by Todd J. Kantor. The firm manages more than $3.8 billion in discretionary assets for a select group of institutional clients. As of March 2024, its publicly reported 13F holdings totaled roughly $1.8 billion. Known for its long/short equity strategy, the team conducts in-depth, bottom-up research across exploration and production, oil field services, and energy cyclical businesses around the globe.
Investment decisions rest on rigorous company analysis, disciplined position sizing, and a process designed to identify mispricings and generate returns over extended periods. This approach provides flexibility to capture market inefficiencies while preserving capital through market swings. The firm’s risk procedures aim to shield assets from significant drawdowns while allowing exposure to shift in response to fundamental drivers. Portfolio construction balances traditional energy names with emerging opportunities, with security selection driven by fundamental insights rather than short-term market movements.
In recent years, Encompass Capital has increased holdings in companies advancing solar and energy storage solutions, holding stakes in Nextracker Inc., First Solar Inc., and GE Vernova Inc. Its private market commitments include a 2023 placement supporting a renewable natural gas plant with carbon capture technology through Green Impact Partners, and a $100 million investment in preferred stock of FREYR Battery (now T1 Energy) tied to U.S. manufacturing assets acquired from Trina Solar. These positions reflect the firm’s attention to technologies that support a lower-carbon energy system.
