Jeppe Kirk Bonde @JeppeKirkBonde: "𝐓𝐡𝐞 𝐁𝐫𝐮𝐭𝐚𝐥 𝐐𝐮𝐞𝐬𝐭 𝐟𝐨𝐫 𝐄𝐧𝐨𝐮𝐠𝐡..."

United Arab Emirates

𝐓𝐡𝐞 𝐁𝐫𝐮𝐭𝐚𝐥 𝐐𝐮𝐞𝐬𝐭 𝐟𝐨𝐫 𝐄𝐧𝐨𝐮𝐠𝐡 𝐄𝐧𝐞𝐫𝐠𝐲 Dear fellow investors, During this decade, many people have said that they are reminded of the world of the 1930s. In 2026, we’ve managed to progress to a situation where many are instead reminded of the world of the 1970s. Today our portfolio is significantly overweight on energy with 𝟭𝟲% 𝗼𝗳 𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗶𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗶𝗻 𝗲𝗻𝗲𝗿𝗴𝘆 𝗮𝗻𝗱 𝘂𝘁𝗶𝗹𝗶𝘁𝗶𝗲𝘀. For comparison, the $SPX500 is only 6% invested in energy and utilities. If energy prices are high for long - it benefits a big part of our portfolio. If energy price increases cause a wider crisis, however, it may not be enough. The largest positions within energy in my portfolio are $EQT (EQT Corp) - the leading US natural gas company, $VST (Vistra Corp) - the top US integrated energy and utilities company, and $CEG (Constellation Energy Corp) - the US nuclear power giant. All of these companies have amazing prospects, 𝘀𝘁𝗿𝗼𝗻𝗴 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗳𝗼𝗿 𝗳𝘂𝘁𝘂𝗿𝗲 𝗽𝗿𝗼𝗳𝗶𝘁𝘀, 𝗮𝗻𝗱 𝗮𝗹𝘀𝗼 𝗳𝗼𝗿 𝗴𝗿𝗼𝘄𝘁𝗵 - although they all face different significant growth challenges. Roughly 𝟏𝟓% 𝐨𝐟 𝐭𝐡𝐞 𝐰𝐨𝐫𝐥𝐝'𝐬 𝐨𝐢𝐥 𝐬𝐮𝐩𝐩𝐥𝐲 𝐢𝐬 𝐝𝐢𝐬𝐫𝐮𝐩𝐭𝐞𝐝 𝐛𝐲 𝐭𝐡𝐞 𝐩𝐚𝐫𝐭𝐢𝐚𝐥 𝐜𝐥𝐨𝐬𝐮𝐫𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐒𝐭𝐫𝐚𝐢𝐭 𝐨𝐟 𝐇𝐨𝐫𝐦𝐮𝐳, along with infrastructure attacks and worries about escalation, the oil price is up by over 40% since the Iran War began. Before the current crisis, the world was consuming energy at a rate of roughly 650 exajoules per year and rising by about 2% per year. Approximately 29% from oil, 27% from coal, 23% from natural gas, 16% from renewables, and 5% from nuclear. That mix has been shifting slowly: 𝐫𝐞𝐧𝐞𝐰𝐚𝐛𝐥𝐞𝐬 𝐡𝐚𝐯𝐞 𝐛𝐞𝐞𝐧 𝐠𝐫𝐨𝐰𝐢𝐧𝐠 𝐚𝐭 𝐚𝐫𝐨𝐮𝐧𝐝 𝟓% 𝐩𝐞𝐫 𝐲𝐞𝐚𝐫, 𝐰𝐡𝐢𝐥𝐞 𝐨𝐢𝐥 𝐚𝐧𝐝 𝐜𝐨𝐚𝐥 𝐡𝐚𝐯𝐞 𝐞𝐚𝐜𝐡 𝐠𝐫𝐨𝐰𝐧 𝐚𝐭 𝐨𝐧𝐥𝐲 𝐚𝐛𝐨𝐮𝐭 𝟏% 𝐩𝐞𝐫 𝐲𝐞𝐚𝐫. When comparing energy types as investments, we have to compare the cost to deliver energy to the same place, at the same time, with the same level of reliability to get the fair picture. When that is done - the picture is quite clear. 𝗡𝗮𝘁𝘂𝗿𝗮𝗹 𝗴𝗮𝘀 𝗶𝘀 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗰𝗼𝘀𝘁-𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 in most places. This is also why large companies are primarily choosing natural gas plants for new-builds to e.g. power new datacentres. If the costs for externalities such as air pollution, global warming, and local energy security, however, are factored in - nuclear power wins out in many places, including Europe. Different production methods have very different profiles. Nuclear is medium-priced, extremely stable, and clean, but hard to adjust quickly. Natural gas is affordable, stable, and can be highly adjustable, which makes it a strong complement: you run nuclear around the clock for base demand and turn on gas for peaks. 𝗠𝗶𝘅𝗶𝗻𝗴 𝗲𝗻𝗲𝗿𝗴𝘆 𝘁𝘆𝗽𝗲𝘀 𝗮𝗹𝘀𝗼 𝗴𝗶𝘃𝗲𝘀 𝘆𝗼𝘂 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻. The wind may blow on days the sun doesn't shine. Batteries help further by shifting oversupply to when it's actually needed, but are unfortunately still expensive. If more people plug in electric vehicles with large batteries when the wind is blowing or the sun is shining, it makes solar and wind more competitive at larger scales. Different energy types are only partially substitutable for each other. If the oil price is too high, and then the gasoline price at the pump is too high, 𝗺𝗼𝗿𝗲 𝗽𝗲𝗼𝗽𝗹𝗲 𝗰𝗮𝗻 𝘀𝘄𝗶𝘁𝗰𝗵 𝘁𝗼 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰 𝘃𝗲𝗵𝗶𝗰𝗹𝗲𝘀 - 𝗯𝘂𝘁 𝗻𝗼𝘁 𝗲𝘃𝗲𝗿𝘆𝗼𝗻𝗲 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆. You can use every type to create electricity - but a change again takes time. So a shock in one price doesn't fully impact the remaining segments. This means that companies that spend a lot on that type of energy can be in trouble, and so can their customers, whom they will pass at least some of the cost onto, if not all of it and then some. We desperately need to stop global warming. With nuclear power seeming risky, renewables being expensive once the full costs are taken into account, coal being a mega polluter, and oil subject to a lot of geopolitical risk - natural gas has a short-term advantage. But natural gas still causes global warming. So, it won't solve that issue. 𝗧𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 𝗶𝘀 𝗶𝗻 𝗾𝘂𝗶𝘁𝗲 𝗮𝗻 𝗲𝗻𝗲𝗿𝗴𝘆 𝗽𝗶𝗰𝗸𝗹𝗲. And this, at a time when new data centre buildouts for AI will be requiring a lot of extra energy. I evaluate that it is 𝗯𝗲𝘀𝘁 𝗮𝘁 𝘀𝘂𝗰𝗵 𝗮 𝘁𝗶𝗺𝗲 𝘁𝗼 𝗯𝗲 𝗾𝘂𝗶𝘁𝗲 𝗵𝗲𝗮𝘃𝗶𝗹𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗲𝗱 𝗶𝗻 𝘀𝗲𝗰𝘂𝗿𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 in the right places. Best regards, Jeppe Kirk Bonde

Not investment advice. The author may have financial interests in the mentioned instruments.