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Energy Hedge Funds

Energy Hedge Funds

Find here information on Hedge Funds that invest in the energy sector. Hedge Funds have been rumored to be influencing energy prices for over a decade now but most of that was just market hype. Unregulated and largely secretive Hedge Funds trade in crude oil, petroleum products, natural gas, physical and financial power, coal, emissions and renewable energy.

Everyday, our dependence on energy is increasing and so the stakes are getting higher. The investment market has come to rely on energy Hedge Funds as well. Energy Hedge Funds are portfolios, managed by a portfolio manager to provide a steady growth and investment return regardless of the market conditions. What makes Energy Hedge Funds so attractive is that there is a growing demand for energy. The current political concerns make this especially attractive to investors seeking to maintain their fortunes.

Global Change Associates and Utilipoint have completed the first study on Energy Hedge Funds entitled “Hedge Funds Enter the Energy Trading Space.” The authors of the study have identified over 200 Hedge Funds that are active in the energy sector and presents a concise overview of how Hedge Funds are impacting trading in energy markets.

The entrance of Energy Hedge Funds in commodity trading is new. They are bringing both liquidity and more price volatility to the global energy markets. Their presence is accelerating the financialization of energy markets.

Over one trillion U.S. dollars are invested in Hedge Funds and now Energy Hedge Funds have begun to gain prominence in the world of Hedge Fund investing. Energy Hedge Funds are solid producers. Why? Because there are no market holidays, no end of trading bell and none of the other factors that contribute, at times to an unstable market. Instead, the energy market runs 24x7x12. That is round the clock. The demand is constant. Another factor is the ability to transfer and ship energy between states and even countries. It becomes rather clear why more Hedge Funds are turning towards Energy Hedge Fund investing.