Browsing: Energy


Commodities are Beginning to Resemble Equities

Apr 7th, 2019 | Filed under: Newly Added, Commodities, The A.I. Industry, Investing in Commodities, oil, Commodities, Energy, Gold

Observers have long noticed that the relationship between return shocks and equity price volatility is asymmetric. That is, positive shocks do not have a marked effect on volatility; negative shocks do. Fischer Black wrote on the subject more than 40 years ago. Recently there has been a good deal ofRead More

Financialization and the Volatility of Commodity Prices

Dec 20th, 2018 | Filed under: Newly Added, Commodities, The A.I. Industry, Industry Size & Managers, Investing in Commodities, oil, Commodities, Energy, Risk Management Strategies & Processes, Risk Management & Operations

A recent article in the Journal of Risk and Financial Management  takes a fresh look at a familiar issue:  whether the development of exchange-traded funds (ETFs) and related instruments tracking the commodities industry (or, in short, the financialization of commodities) has had an impact on the volatility of the pricesRead More

Using the Variance Risk Premium to Predict Futures Markets

Jul 15th, 2018 | Filed under: Newly Added, Commodities, Hard metals, Risk management, oil, Commodities, Risk Metrics and Measurement, Commodities: Examples, Energy, Risk Management Strategies & Processes, Gold

A new study of volatility in commodity prices indicates that both the total and the decomposed variance risk premiums of at least certain commodities markets contain information with predictive power. The variance risk premium is the pay-off of the synthetic variance swap contract. Specifically, it’s the difference between the floatingRead More

What Constitutes Price Manipulation?

Apr 24th, 2018 | Filed under: Newly Added, The A.I. Industry, Regulatory Environment, Commodities, Commodities: Examples, Energy

The two commissions that serve as market enforcers in the United States, the Commodity Futures Exchange Commission and the Securities Exchange Commission, agree on a lot. (As, indeed, one would hope, since their work has considerable overlap.) One of the points on which the commissions have general agreement is theRead More

Eurekahedge: Greater China Mandates Pay Off for January

Feb 20th, 2018 | Filed under: Newly Added, Hedge Fund Industry Trends, Commodities, Hedge Fund Strategies, The A.I. Industry, Investing in Commodities, Indexes, Hedge Funds, Emerging Alternative Investments, oil, Digital currencies, Commodities, Commodities: Examples, Energy, Gold, Other Topics in A.I.

A new Index Flash Update from Eurekahedge says that hedge funds are off to a positive start to 2018. The industry globally gained 2.26% in January. Among developed world mandates, North American hedge funds were up 1.89%, followed by those of Japan and Europe, which gained 1.28% each. Higher numbersRead More

Ceres Report Evaluates Value of Early-Stage Clean Energy

Feb 4th, 2018 | Filed under: Newly Added, Private Equity, Venture capital, Socially responsible investing, Emerging Alternative Investments, Alternative energy, Other Issues in Private Investments, Commodities: Examples, Energy, Private Investments, SRI and Clean Energy, Other Topics in A.I.

A recent publication from Ceres, a nonprofit organization devoted to promoting sustainability as a goal in both investing and corporate governance, looks at the value that early-stage clean energy products offer venture capitalists. The publication is the work of a team of five “lead authors and key contributors,” including threeRead More

Til and Heckinger on Commodity Debacles, Part I

Aug 3rd, 2017 | Filed under: Newly Added, Commodities, Investing in Commodities, Commodities, Commodities: Examples, Energy

A new paper available at SSRN looks at two infamous commodity industry melt-downs: Amaranth and MF Global. It offers a diagnosis of each. Hilary Till, of the EDHEC – Risk Institute, and Richard Heckinger, of the Federal Reserve Bank of Chicago, share the by-line. They acknowledge research assistance from KatherineRead More

Eurekahedge: Redemptions Exceeding New Investment for HFs Worldwide

Sep 5th, 2016 | Filed under: Newly Added, Commodities, Hard metals, Hedge Funds, Commodities, Commodities: Examples, Energy, Relative Value Hedge Funds

Hedge funds have now seen three consecutive months in which redemptions have exceeded new investment, for a net outflow. The net outflow for July alone was $5.7 billion. Fortunately, July also saw performance based gains of $10.5 billion, so the total assets under management grew slightly. The table below adaptedRead More

Proposed Reg AT: Comments Pile Up at the CFTC

Mar 22nd, 2016 | Filed under: Newly Added, Commodities, The A.I. Industry, Regulatory Environment, oil, Commodities, Commodities: Examples, Energy

The CFTC received a last-minute pile-up of comments on proposed rule 80 FR 78824, on automated trading. The commenters generally are not in a mood to pat the agency on its intangible back and congratulate it on a job well done. Quite the contrary. The notice of proposed rule-making (NPRM)Read More

More about Arch Coal and the Dusty Trail Ahead

Jan 24th, 2016 | Filed under: Newly Added, Commodities, Investing in Commodities, Socially responsible investing, Commodities, Commodities: Examples, Energy, SRI and Clean Energy, Other Topics in A.I.

I wrote here last week about the demise of Arch Coal.  I was reminded of the incompleteness of my treatment there by the commenters on that piece, and I’ve been reminded again by subsequent developments. More then: in December 2013 Arch made a tender offer for its $600 million ofRead More

Arch Coal: Another One Bites the Coal Dust.

Jan 13th, 2016 | Filed under: Newly Added, Commodities, Investing in Commodities, Alternative energy, Commodities, Commodities: Examples, Energy, SRI and Clean Energy, Other Topics in A.I.

Arch Coal, one of the biggest coal companies in The United States, entered Chapter 11 Monday morning, Jan 11. A prominent law firm, Davis Polk & Wardwell, will be taking it through the process, as will financial advisor PJT Partners. Arch (NYSE:ACI) hit its recent high stock price on AugustRead More

Commodities: Catching a Falling Knife on the High Seas

Jan 5th, 2016 | Filed under: Newly Added, Equity Hedge Funds, Hedge Funds, oil, Commodities, Commodities: Examples, Energy

The problem with a Star Bulk play or with analogous plays in the equity of dry bulk shippers is that the bottom of this bargain basement may not yet have been found. The problem behind the problem is China, which has fallen out of love with imported coal. Read More

The Canary in the Coal Stocks and Fossil Fuel Divestment: the Portfolio You Save May Be Your Own

Sep 14th, 2015 | Filed under: Commodities, Energy, Climate change

A Wall Street analyst recommends bottom fishing in fossil fuel stocks and does an excellent job in analyzing all the market forces EXCEPT the primary one, rapidly increasing climate change. If he is typical of Wall Street expert analysis on fossil fuel stocks, be afraid. Be very afraid. Read More

The need-to-knows of Master Limited Partnerships (MLPs)

Dec 7th, 2014 | Filed under: Alpha Strategies, Energy

Guest columnist Andrew Smith, CAIA, deep dives the Master Limited Partnership (MLP) structure.Read More

The Undead Enron Model Returns to the World above Ground

Nov 2nd, 2014 | Filed under: Commodities, Regulatory, Legislation/Court rulings, Energy

Enron was once the leader in a category of merchant traders that mediated in the world of energy commodities. Enron died, and banks largely took it over. Yet in spirit, at least, Enron is back. Read More

The Bubble This Time: Oil & Gas Energy Stocks?

Oct 15th, 2014 | Filed under: Commodities, Indexes, Energy

If we look for the recent peak in Dow Jones U.S. oil & gas stocks we’ll look to the start of the summer. In June of this year the energy sector got above $850. The fall from that height puts the size of our correction in the neighborhood of 16%. It is possible these stocks are leading the rest of the market down. Read More

Old-Line Oil and Coal are Techno and Exciting These Days

Oct 1st, 2014 | Filed under: Venture capital, Alternative energy, Energy

Revolution is underway in the energy world. For investors, one of the most unexpected facts about this revolution is that it permeates precisely those portions of the energy sector long thought sleepy and conventional: the fossil fuels. Read More

Windfall: a Book on the Rise of the Climate Investor Class

Aug 6th, 2014 | Filed under: Social investing, Alpha Strategies, Energy, Climate change

Guest columnist Doug Friedenberg reviews "Windfall," and looks at the potential for investing in a changing climate.Read More

China’s Oil Giant At Center Of Corruption Probe

May 27th, 2014 | Filed under: Energy's Ky Krauthamer looks at corruption in China's oil industry.Read More

Producing Energy: The Closest Thing to a Perfect Asset

Jul 7th, 2013 | Filed under: Commodities, Alpha Seekers, Energy

Guest columnist Paul Thomas looks at the energy markets.Read More

Another Energy Boom is on the Way

Apr 17th, 2013 | Filed under: Energy

Guest columnist Dan Dicker looks at oil and energy.Read More

Is Tunisia the New Hot Spot for Energy Investors?

Apr 11th, 2013 | Filed under: oil, Energy

James Stafford talks to John Nelson, CEO of Africa Hydrocarbons Inc. about what should be on the energy investors' watch list.Read More

What SandRidge May Herald for Challenge Slates

Mar 27th, 2013 | Filed under: oil, Energy

Litigation before the Delaware Chancery Court, Kallick v. SandRidge, led to an opinion issued March 8 that addresses when a board of directors must approve a particular dissident slate for the purpose of avoiding a so-called “poison put.”Read More

NG Futures Traders: Who’s Your Regulator?

Mar 24th, 2013 | Filed under: Commodities, CTA, Regulatory, Energy

As a three-judge panel of the D.C. Appeals Court saw it, there were two questions in the Brian Hunter case. First, did the CEA’s language encompass manipulation of NG futures contracts as part of the exclusive jurisdiction of intervener CFTC? Second, if so, was that repealed or modified by the 2005 legislation? Read More

Oil Explorers Beware: Hackers Are Watching What You Know

Mar 13th, 2013 | Filed under: oil, Energy

Cyber risk management is critical new exploration territory for oil companies.Read More

Be Careful: Russia is Back to Stay in the Middle East

Mar 5th, 2013 | Filed under: Energy

Felix Imonti looks at Russia's presence in the Middle East.Read More