Citron Capital LLC, an investment research and management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. In the letter, the firm talked about the Environmental, Social and Corporate Governance (ESG) or the sustainable way of investing and gave emphasis on a certain equity. You can view the fund’s top 10 holdings to have a peek at their top bets for 2021.
Citron Capital LLC, in their Q4 2020 Investor Letter said that they believe Star Peak Energy Transition Corp. (NYSE: STPK) is worth more than its current market capitalization value, and that it is a future $800 billion, Tesla like boomer, in the US markets. Star Peak Energy Transition Corp. is a company that focus on businesses that involves reducing carbon footprints and improving energy efficiency. It currently has a $1.4 billion market cap. For the past 3 months, STPK delivered an immense 215.49% return and settled at $32 per share at the closing of January 25th.
Here is what Citron Capital LLC has to say about Star Peak Energy Transition Corp. in their Investor Letter:
“Last week, billionaire tech investor Chamath Palihapitiyav was interviewed about his views on Tesla and Elon Musk on CNBC.
As Palihapitiyav explains that Tesla’s $830 billion market cap is due to the company “figuring out how to harness energy” and “how to store it”, we believe STPK is beyond mispriced at just $3 billion given it is the leading AI powered energy storage system and is DOMINATING Tesla at this game. STPK is the 800-pound gorilla in this market.
STPK is the industry leading provider of AI-driven energy storage systems through its proprietary software platform, Athena, that empowers customers and partners to optimize energy usage by automatically switching between battery power, onsite generation and grid power.
We believe it is a foregone conclusion that smart energy storage will be a critical component of Biden’s $2 trillion green plan as more efficient storage and use of power will only further drive adoption of renewable energy generation.
By operating the world’s largest network of energy storage systems powered by the company’s Athena AI platform, STPK couldn’t be better positioned.
STPK has over 900 systems operating/contracted currently in 200+ cities that represent 1 GWh of storage capacity. The platform has operated globally with over 16 million runtime hours and has a backlog of significant business that will
drive growth for years to come.
STPK CEO John Carrington was previously an Executive Vice President at First Solar where he grew the company’s revenue from $400 million to $2 billion. Prior to that, Carrington was the Chief Marketing Officer at General Electric.
STPK CTO Larsh Johnson was previously CTO for the digital grid of >$100 billion market cap Siemens.
Simply put, this is not some Nikola BS. The management team at STPK is as high quality as they come in the ESG sector.
As ESG ETF buying is set to explode, STPK stands out vs. many of the other ESG junk companies that are hitting the market today. STPK is a REAL company with tremendous growth potential.
As a result, we expect STPK to become a core holding of every ESG ETF in the market and for the float to be quickly gobbled up sending the stock materially higher.
It’s not often you get the opportunity to invest in a disruptive market leader within a >$1 trillion TAM with industry leading technology at a $3 billion valuation. See you at over $100.”
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Video: Top 5 Stocks Among Hedge Funds
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