Sitting high on his perch overlooking Turtle Creek, Frederick Skylar III or “Tres”, is ready to swoop down and gobble up easy returns in the oil and gas space. “Look, this is a once in a lifetime opportunity. I’ve never seen value like this in my career.” The recent SMU grad has a reputation for a take-no-prisoners attitude when it comes to investing. “Your performance is graded at 2:30 every day when the market closes. Your report card gets handed to you when you walk out that door at 3 o’clock.”
Founded with seed capital from his father, Dallas real estate legend Frederick Skylar Jr, the fund current manages over $50 million. The success of his venture is obvious by the plush office space and 120 person staff. “Our success is due to having the best people. We have one of the best energy groups and merger arbitrage teams around.”
“We went all in on energy in the second quarter of ‘19. We like buying short dated call options to maximize returns from these ideas.” He continues “Eric, who heads our energy desk is one of the best in the biz. He’s an absolute animal. Knows everyone in the space.” Eric Davidson V or “Cinco” came from cross town rival Longhorn Investments after working as an associate there for 2 years and 3 months.
“We are value investors. We see value in oil and gas. We love the Permian. Our biggest holding, Occidental, has a first class management team and first class assets. They were an absolute steal in the 60s. It’s highway robbery here in the 20s.”
As all time lows have hit energy and energy stocks have subsequently dropped, Tres is undeterred. “This is why we are opening up this fund to retail investors. We want everyone to be able to share in the opportunity. You don’t have to be a millionaire to invest with UMS. Our minimum investment is 2 thousand dollars to get in the fund.”
The future has never looked brighter for the team at UMS. “It’s like Warren Buffet always said ‘be fearful when others are greedy’, so that’s what we are going for here. Strike while the iron is hot. Not just trying to throw things on the wall and see what sticks. Keep what you kill.”
Source of featured image: Institute of Entrepreneurship Development