Investors NEED to be Aware of Industry Regulations in Their Exposures

I'm going to talk a little bit about how exposure to a regulated industry impacts potential return outcomes. Grid is playing in more of the electric grid, electric energy, renewable space, which is a regulated framework. It's utilities for all intents and purposes, and so that can be somewhat of a constraint on potential upside opportunities there.

Whereas GTCR is less involved in that space. As I mentioned when I was talking about kind of performance and the like, one is much more heavily related on government spend than the other. I am inclined to stay away from anything where a government is too involved, and that regulatory pressures can really change the thesis.

You know, in the case of electric infrastructure and things of that nature, renewables, clean energy, who's in the White House can matter in terms of the expenditures in that space, the subsidies, and so on and so forth. Those things are all kind of out of the control of the companies that are in the space.

I do prefer GTCR because it has a little less regulatory oversight, and it's less impacted by government spending and subsidies. So I am going in the opposite direction. I can see where this battle's going.

It's a clear preference on either side for different reasons, but my winner is GTCR because I prefer more of a free market framework versus something that's highly regulated and particularly sensitive to government spending and subsidies.