By July 13, 2016 Read More →

AlphaGen energy hedge fund up 59.9 per cent in year to July 12

Energy hedge fund

AlphaGen analysts running an energy hedge fund expect a “surprise to the upside” as global production continues to fall. Linn Energy photo.

Energy hedge fund up as oil production falls globally

LONDON, July 13 (Reuters) – An energy hedge fund run by London-based AlphaGen Capital, a subsidiary of Henderson Global Investors, has made gains of almost 60 percent in the year to July 12, the firm confirmed to Reuters.

AlphaGen’s 59.9 percent return in its Elnath fund contrasts with the average energy hedge fund gain of 10.3 percent in the year to June 30 as oil rose 30 percent from 12-year lows, according to data from industry tracker Hedge Fund Research.

“The oil price overshot the downside and what’s happened is we had no spare capacity globally,” Mark Gordon, AlphaGen’s Elnath fund manager, told Reuters. “We’re actually set up to have a surprise to the upside.”

“I think the oil price will continue to go up because production globally is falling and that is not sustainable.”

Gordon, who joined Henderson from Paulson & Co after stints at Soros Fund Management and Goldman Sachs Asset Management, said the UK’s exit from Europe is predicted to reduce global demand by 100,000 to 200,000 barrels a day in 2017 – not a particularly big amount.

The AlphaGen Elnath fund, wholly owned by Henderson Group , takes long and short positions in energy stocks. The Elnath fund, and a long-only fund called Energy Best Ideas, also managed by Gordon, have $80 million in assets. Energy Best Ideas has gained 59.8 percent over the past year to July 12.

(Reporting by Maiya Keidan and Lawrence Delevingne; Editing by Alexandra Hudson)

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