Old West Investment Management's flagship fund surged 31% this year, a gain largely fueled by a bold bet on energy stocks executed before the Iran war dramatically spiked oil prices. Chief Investment Officer Brian Laks revealed the firm significantly increased its energy-stock exposure from single digits to over 30% of holdings in early 2024. This move, made while oil traded around $60 a barrel and Venezuela's Maduro still led, was partly driven by expectations of a sector rebound as supply concerns outweighed slowing demand fears.

The strategy proved prescient as geopolitical shocks—including the Trump administration's actions in Venezuela and Iran, plus Russian sanctions—pushed oil above $110 a barrel. Laks acknowledged the timing was fortuitous but stressed the move underscored the value of scarce resources during crises. The fund's performance eclipsed major peers like Pierre Andurand's 19% gain and RCMA Capital's 20% return, outperforming multi-strategy giants like Citadel's Wellington (2.9%) and Balyasny's Atlas Enhanced (0.4%).