Oh ye of little faith—turns out even the staunchest believers in an oil rebound are securing an escape route.
Investment heavyweights like Blackstone, Avenue Capital and Och-Ziff Capital are all raising money for energy investments. But the bulls are still moving with caution, the Wall Street Journal reports.
Some funds are focusing on senior loans, the first in line to get paid back if energy companies run into debt problems. Meanwhile, others are buying hedges against further declines in oil prices.
The moves limit their potential gain, but also guards against a complete market rout. Avenue Capital founder Marc Lasry (pictured, right) echoes other top investors, calling the slump a “once-in-a-lifetime opportunity.”
But, despite the bullishness on energy, Andrew Herenstein (pictured, left), managing principal at Monarch Alternative Capital, says it's better to hedge than make direct bets on the rebound. [WSJ]
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