GAIM 2013: Perkins' fund betting big on nat gas price swings
Thursday, January 24, 2013 - 04:10
Jan 23 - Natural gas prices may be low, but former energy trader turned hedge fund manager Bill Perkins of Skylar Capital Management is making big bets on volatility swings in nat gas.
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Hedge fund manager bill Perkins has found a way to make money out. Natural gas and other areas of energy space he's chief investment officer. After Skyler capital enjoys the game conference in Florida good to see you see. Now it's interesting you have a -- background and you brought your expertise as a trader. Into new space how has that helped you in your current. Well I've been involved in natural gas since 2002%. Source energy and in part that other trading firms. Natural gas as -- fast rapid. Moving commodity as multiple trends and that suits -- very well we're very adept at figuring out what trends are moving quickly we're heading into research. So using those -- towards skills we've learned mean prior. Prior trading analysis. Using a fundamental analysis to figure out what's gonna happen natural gas is in the great fit for energy commodity. Now -- cast is actually the best performing commodity in neon. Commodity index last year which is suggesting that the price you know looks low compared to what that gas used to trade up and you're benefiting from price swing. Correct whether it's for -- or or going down where the prophet. On either side. Provided that we're right right we did our homework we got analysis rate we basically make money. Awful volatile swings. Identifying trends before that happening but on this. In terms of this year which you expect that gas to perform the same way it did last year. Every year's different. You know that's that's the hundred million dollar question billion dollar question is is how natural gas reform. We have a couple dynamics that are moving and changing right now it's whether supply will continue to grow. Or or or taper off is as demanded induce. Based on these low prices and are -- other friends. In demand or supply that may overtake. The current level fundamentals and be the primary driver prices. Are you still raising money right now yes we -- okay so how big do you want to grow. Right now our target. A UN is around 700 million dollars we feel that's a good numbers for our target returns. Two to start out -- And in terms of -- your client base what is attracting people to your strategy. That narrow focus strategy which generally. It it seems that people were specialist in the field generally have a greater grasp of the fundamentals. So when things are changing rapidly or it is -- underlying shifts such as shale gas or the the inducement of demand the knicks player whether it be natural gas or actual will have an edge over the rest of the players. That's where we see currencies. You make and the comments by the international agency couple months ago talking again about. US skating -- energy independence. I see that there are trends that that would be true I don't I'm not as much involved in the wheel side of it but essentially be. The great job by the producers in terms of lowering the cost structure that technology basically moving natural gas from me. Guessing where it is game to a manufacturing process has has made that a possibility. It's the risk for you and your funds this year price swings or is it. -- -- -- -- Ultimately the risk for the fund is is determined by the -- out the risk alligator too. Ultimately the risk allies with the -- not what the market. And that risk uses do you get it wrong there are. Large price was based on whether there are some some random events but basically he will. Well positioned for you and well managed firm will will make it does this -- Perkins to talk you thank you -- that -- some months. I'm Rhonda -- this is writers.
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