Any investors banking on cheap energy for their next big profit may need a new strategy, according to Third Point's Dan Loeb.
In a conference call reported by Bloomberg on Friday, Loeb said funds that expect to buy oil cheap and ride the upswing "might be disappointed."
After seeing seven straight months of decline, many investors are now scooping up oil and energy investments at bargain prices.
Firms taking part in this strategy include Blackstone Group and Apollo Global Management. Apollo was also hit hard by the oil slump, and recently reported an 86 percent decline in fourth quarter earnings. According to the Wall Street Journal, traditional investors have also started funds dedicated to capitalizing on the opportunity in oil.
But Loeb sees exaggeration in the price changes. "Equities have already moved up in anticipation of the recovery," he said. "We're pretty much on the sidelines of energy."
He said investing in energy right now would be "kind of like European funds that were set up to capitalize on European distressed-debt situations," Bloomberg quoted.
You can read the full story at Bloomberg >>
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