CBRG delivers 2x daily leveraged exposure to companies involved in carbon capture, removal, and storage technologies. This fund bets that decarbonization tech will outperform as climate regulations tighten and carbon credit markets mature.
How It Works
The fund uses swaps to achieve 200% daily exposure to an index of carbon removal and storage companies — think direct air capture firms, geological storage operators, and carbon utilization tech. Daily rebalancing means the leverage resets each night, creating a compounding effect that can deviate significantly from 2x the index's longer-term returns.
Key Features
- Pure-play exposure to carbon removal tech, not diluted with general cleantech
- 2x leverage amplifies both gains and losses from this nascent sector
- Daily reset structure makes this a trading vehicle, not a buy-and-hold investment
Risks
- Daily compounding can destroy value in volatile markets — down 10% then up 10% loses you money at 2x leverage
- Carbon removal tech is pre-revenue speculation; companies could burn cash for years before commercial viability
- Regulatory changes or subsidy cuts could crater the entire sector overnight given its policy dependence
Who Should Own This
Short-term traders betting on near-term catalysts in carbon tech — a big direct air capture contract, new tax credits, or climate summit announcements. Maximum holding period should be days, not weeks. This is a scalpel for expressing high-conviction views on carbon removal momentum, not a portfolio building block.