Globe and Mail – Not every hedge fund manager is betting the farm on natural gas.
New York-based Van Eck Global Absolute Return Advisers Corp. certainly isn’t. The company, which has been offering alternative investments for more than 50 years, runs a number of funds, including those that invest in both commodities and commodity stocks. It manages about $4-billion (U.S.) in assets.
“We think short term that energy is not necessarily where we like to be,” said Charl Malan, senior analyst at Van Eck. And that decision is driven purely by the fundamentals for natural gas. “The fundamentals we see are showing us that natural gas is going to be weak,” between now and the end of the year, he added. It has no position in natural gas.
Van Eck’s near-term view of gold is more upbeat and it’s betting on big gains. The firm considered gold overvalued when it was trading around $720 (U.S.) an ounce and more in mid-May but it fell to a close of $583.20 on the New York Mercantile Exchange yesterday.
