Hosking Partners LLP on International Seaways, Inc.
Thesis
International Seaways is a constituent of Hosking's tanker investment basket. The manager originally identified the opportunity when investor aversion to a cyclical industry starved fleets of new capacity. Rising day rates and disrupted oil trade routes subsequently improved operating economics. Hosking remains exposed but has begun taking profits as new share issuance and vessel ordering signal a potential supply response.
“a classic, contrarian capital cycle”
Key risks
- Rising tanker order books could reverse the beneficial supply shortage.
- Reduced geopolitical disruption might normalize tanker route lengths and freight prices.
- The oil-tanker industry remains cyclical despite the favorable current supply setup.