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Portfolio > Alternative Investments > Hedge Funds

Center Sees Energy Funds Rev Up

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HOUSTON (HedgeWorld.com)–The Energy Hedge Fund Center now lists more than 330 hedge funds in its directory and is adding two to three new ones per week.

The , available by subscription, lists funds that either are specialist energy funds or more diversified vehicles that have exposed more of their assets under management to the energy industry.

Of the funds in its listings, EHFC has identified about 100 active in energy commodities markets and more than 70 that pursue energy-focused long/short equity strategies. The directory also lists a growing number of alternative energy, or “green,” hedge funds.

About 90 of the funds have a 100% focus on the energy industry, while many more are active across commodity categories that include electric power, natural gas, refined products, crude oil, metals and agricultural products. EHFC analysts say a recent trend has been a rise in interest in energy from funds of funds, which they say might bring more conservative investors into the energy sector. The number of funds of funds with a focus on natural resources, energy or both has tripled in the last three months, according to EHFC.

“The recent interest in energy on the part of funds of funds represents a maturation of hedge fund activity in the energy industry,” said Gary M. Vasey, co-founder, along with Peter C. Fusaro, of EHFC, in a statement. “Funds of funds generally offer more conservative investors access to a more diversified portfolio of energy and energy-related hedge funds–often institutional investors. To date, many of the energy hedge funds appear to have been funded by wealthy private investors and private money.”

Mr. Fusaro said the group expects to see 300 new energy funds enter the market this year. “They will be trading energy commodities but also will be involved in distressed debt, carbon, emissions and renewable energy trading, as well as water trading,” he said.

In addition to its web site and directory, the center offers periodic online briefings on hedge funds in the energy industry. The next one is scheduled for May 10.

Contact Bob Keane with questions or comments at: [email protected].


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