Hedge funds have invested a record $6.5 billion in U.S. petroleum refiners, expecting profit to jump as companies shut aging plants and acquire cheaper supplies of North American crude from burgeoning shale-oil wells.This was reported in a Bloomberg article. See the last paragraph:
Barry Rosenstein’s Jana Partners LLC and David Tepper’s Appaloosa Management LP alone have amassed $1.3 billion of stock, joining funds that together more than quintupled their money in the industry since the S&P 500 Oil & Gas Refining & Marketing Index’s eight-year low in the fourth quarter of 2008. The index soared 18 percent this year, beating the 5 percent gain in the Standard & Poor’s 500 Index.
North Dakota’s Bakken is the center of that boom. Production has more than tripled since 2008, according to data compiled by Bloomberg, because of drilling techniques including hydraulic fracturing.I remember all the stories back in 2008 about how the Bakken was over-hyped.
If you know how to do it, go to Yahoo!Financial and do a 5-year comparison on return comparing Apple, Inc. (AAPL) and Northern Oil and Gas (NOG). NOG handily beat AAPL, about 550% to 480% return.
Again, see disclaimer at the sidebar at the right. This is not an investment site. I accumulate shares in none of the companies mentioned on this page, and have no intention of doing so in the near term (> 1 year).
I invest, although not so much anymore. I give most of any free cash I have to a) Starbucks; b) my granddaughters; c) my younger daughter (the older daughter has the granddaughters); and, d) the Harvard Book Store. I do not trade.
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