About AES Capital

The primary investment objective of AES Capital is aggressive capital appreciation. 

AES Capital has a unique investment strategy that utilizes both economic fundamentals and technological expertise. We begin with macroeconomic fundamental analysis to determine growth sectors, and concentrate assets in those sectors. At the moment, that brings us to resources, alternative energy, and precious metals.  AES Capital then utilizes a rigorous stock selection process to find companies with 10X potential within those sectors.  The fund seeks outstanding results by finding a small number of truly unique investments with asymmetric risk/reward profiles and defined realizable catalysts. The fund employs extensive bottom-up fundamental analysis.

Specifically, we seek prosperity through discovery.  We utilize our technological expertise to determine which companies are about to discover, or recently have discovered, new resources or new technologies and are capable of bringing them to market. Considered most important are catalysts (such as the introduction of new products or patents, the discovery and buildup of a large resource, corporate restructuring or market repositioning, and any special situations) that will improve the perceived value of the company. AES Capital will seek to buy and hold such stocks until the event sought occurs. We may invest in these companies at various stages to bring such events to fruition, including investing in PIPEs. If necessary, we may aid with the acquisition, merging, or breakup of companies to increase value.

This primary strategy tends to yield long-term capital gains and short-term capital losses. Since long-term capital gains have a significantly lower tax rate than short-term capital gains, AES Capital tends to be very tax efficient. This tax efficiency distinguishes AES Capital since most hedge funds engage in significant short-term trading. 

Although concentrating a portfolio in relatively few sectors and often in small and micro-cap positions tends to increase volatility, we use little or no leverage and, consequently, can ride through short-term volatility to capitalize on specific company events.  We will, however, trade around core positions to capture additional gains from volatility, and hedge against it using market timing strategies.  When we perceive that macroeconomic fundamentals are changing, we will change the sectors we are concentrated in.  There is no assurance, however, that our strategies will be successful.

AES Capital is for high net worth investors seeking superior performance with a small portion of their overall net worth. Investors should only invest risk capital, enabling them to tolerate the possibility of high volatility.

In its sole discretion, the General Partner may limit or expand the class, type, and nature of the investments which the fund will be permitted to make. The primary objective of the partnership will be superior capital appreciation.

 
THE FORGOING STATEMENT OF INVESTMENT PHILOSOPHY AND INVESTMENT PROCESS IS A BRIEF EXECUTIVE SUMMARY OF THE INFORMATION CONTAINED IN THE PRIVATE OFFERING MEMORANDUMS OF AES CAPITAL. THIS EXECUTIVE SUMMARY IS NOT TO BE CONSTRUED AS AN OFFER TO SELL SECURITIES OF OR ANY INTEREST IN ANY OF AES CAPITAL'S HEDGE FUNDS NOR AS AN INVITATION OR SOLICITATION FOR OFFERS TO BUY SECURITIES OF OR ANY INTEREST IN ANY OF AES CAPITAL'S HEDGE FUNDS. THIS EXECUTIVE SUMMARY IS NOT TO BE CONSTRUED AS A SUBSTITUTE FOR THE PRIVATE OFFERING MEMORANDUM AND SHOULD BE CONSIDERED ONLY IN CONJUNCTION WITH THE PRIVATE OFFERING MEMORANDUM, THE AGREEMENT OF LIMITED PARTNERSHIP, AND THE SUBSCRIPTION DOCUMENTS; ALL OF WHICH SHOULD BE CONSIDERED AS A WHOLE , IN MAKING THE INVESTMENT DECISION. NOTHING TO THE CONTRARY WITHSTANDING CONTAINED HEREIN, POTENTIAL INVESTORS ARE CAUTIONED THAT THEY MAY RELY ONLY UPON INFORMATION CONTAINED IN THE PRIVATE OFFERING MEMORANDUM, THE AGREEMENT OF LIMITED PARTNERSHIP, AND THE RELATED SUBSCRIPTION DOCUMENTS.