My first investor letter for the Bastion Energy ETF (BESF) is now available.
It covers the fund’s performance since inception, how the Hormuz closure is repricing American energy, and the specific way I think the market is mispricing how long this lasts.
In short: Hormuz is a box canyon, which is good for U.S. energy.
The letter also closes with an ode to American energy — because BESF is built to be a value investor’s expression of it.
I hope you find it useful, and please reach out with questions anytime.
Read the full letter here: BESF Q1 2026 Letter
– Cale
Cale Smith, Portfolio Manager, Bastion Energy ETF (BESF)
IMPORTANT RISK INFORMATION
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Bastion Energy ETF before investing. This and other important information about the Fund is contained in the prospectus and summary prospectus, which can be obtained by calling (786) 539-0092 or visiting www.bastionetfs.com. The prospectus should be read carefully before investing. Investing involves risk, including possible loss of principal.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate, so an investor’s shares, when sold, may be worth more or less than original cost. Current performance may be higher or lower than the performance quoted. For current month-end performance data, visit www.bastionetfs.com.
Investment Risk. When you sell your Shares, they could be worth less than what you paid for them. The Fund could lose money due to short-term market movements and over longer periods during market downturns. Securities may decline in value due to factors affecting securities markets generally or particular asset classes or industries represented in the markets.
Energy Sector Risk. The Fund concentrates its investments in the energy sector and is therefore subject to risks affecting that sector, including supply and demand for energy resources, commodity price volatility, geopolitical events, environmental and regulatory developments, technological change, weather, and the success or failure of exploration, development, and production activities. Energy securities can be highly volatile and may fluctuate substantially over short periods of time.
Concentration Risk. The Fund holds a concentrated portfolio of securities. As a result, the Fund’s performance may be more volatile than that of a more diversified fund, and adverse events affecting any single holding could have a greater impact on the Fund’s performance.
Non-Diversification Risk. The Fund is non-diversified, which means it may invest a greater percentage of its assets in the securities of fewer issuers than a diversified fund. As a result, the Fund’s performance may be more sensitive to events affecting individual issuers.
MLP and Energy Infrastructure Risk. The Fund may invest in master limited partnerships (MLPs) and other energy infrastructure entities, which are subject to risks including changes in tax treatment, regulatory action, leverage, sensitivity of distributions to commodity prices, and limited liquidity in some securities.
Geopolitical Risk. The Fund’s investments may be adversely affected by geopolitical events, including armed conflict, sanctions, trade restrictions, and disruptions to global energy supply chains. Such events can produce sudden and significant changes in commodity prices and the value of energy-related securities.
Management Risk. The Fund is actively managed and may not meet its investment objective based on the Sub-Adviser’s success or failure to implement investment strategies for the Fund. The success of the Fund’s investment program depends on the Sub-Adviser’s and the portfolio manager’s skill in implementing the Fund’s investment strategy.
New Fund Risk. The Fund is a recently organized investment company with limited operating history. As a result, prospective investors have a limited track record on which to base their investment decision. There can be no assurance that the Fund will grow to or maintain an economically viable size.
The Fund is distributed by PINE Distributors LLC, Member FINRA, SIPC (www.sipc.org). The Fund’s investment adviser is Empowered Funds, LLC, doing business as ETF Architect. Bastion Fiduciary LLC serves as Sub-Adviser to the Fund.
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