Hite Hedge Asset Management LLC

HITE Hedge Asset Management LLC primarily advises private pooled funds (including HITE Hedge LP, HITE Hedge Offshore Ltd., HITE Hedge II LP, and the incubation-stage HITE Hedge Horizon LP) and manages three separately managed accounts on a discretionary basis, serving investors through fund structures rather than broad retail relationships. The firm constructs and implements investment programs for those funds and SMAs and does not tailor the funds’ core strategies to individual investors, although SMA services are described as tailored to individual client needs.

HITE’s investment approach emphasizes relative-value and market-neutral trading within the U.S. and global energy complex, employing long and short equity and debt positions across upstream, midstream, downstream and related services as well as utilities, mobility and renewable energy names. Portfolios are managed in “near-neutral” fashion with typical net exposure between -35% and +35% and potentially high gross exposure (under 500% of NAV); the firm makes active use of derivatives (futures, options, swaps) and may employ leverage and borrowing for both hedging and speculative purposes in its funds and SMAs.

Distinctive disclosures and operational features appear in the brochure: HITE reported and settled an SEC enforcement matter in February 2023 involving Rule 105, paid a civil penalty and reimbursed affected funds for disgorgement and interest, and states it has enhanced procedures since that event. The firm also documents negotiated side letters with four investors that amend fund terms, and it operates concentrated, sector-focused strategies with explicit authority to use extensive derivatives and borrowing in separately managed accounts—practices that the brochure identifies and that are less common among peers that primarily manage pooled vehicles.