July 29, 2015
‘We’ve Got to Be Close to the Bottom’ on Energy: Cushing Founder
“So much has happened since the end of June and in July — it’s been one of the worst, most volatile months I’ve seen in some time,” said Jerry Swank, managing partner, founder and portfolio manager of Cushing, on its second-quarter call with investors Tuesday.
Crude oil fell 44% in the 12 months ending June 30, while natural gas prices dropped 37%.
This means that the valuations of many master limited partnerships have crashed as well, giving investors a chance to move into the sector.
“This is the most negative sentiment I’ve felt for a long time,” said Swank, who has followed the energy business for 41 years.
Gaining knowledge of the energy industry is a significant step in understanding how to invest in and profit from it.
“Everyone has thrown in the towel. Everyone is so negative, we’ve got to be close to the bottom” of the energy price decline, he added.