Energy Trade Paid Off
Hedge fund Old West Investment Management posted a 31% gain after going all‑in on energy names when oil traded around $60/barrel — a reminder that concentrated sector timing still works for some managers ( ). The call is fueling renewed chatter about an energy‑sector rotation as oil prices and supply geopolitics diverge. (x.com).
Brian Laks, Old West’s chief investment officer, said the firm’s energy call was grounded in still‑low sector valuations and an expectation of rising natural‑gas demand from AI data centers. (bloomberg.com)) Bloomberg reports the Los Angeles‑based manager oversees roughly $1 billion in assets. (bloomberg.com)) According to Bloomberg, the team moved the fund’s energy weighting from the single digits to north of 30% in late 2025. (bloomberg.com)) Bloomberg ties a material portion of the rally to geopolitics — Russian sanctions, an Iran war earlier this year and recent US–Israel strikes — which helped push Brent crude above $110 a barrel. (bloomberg.com)) SEC‑derived filings parsed by MarketBeat show Old West added energy names such as NexGen Energy, holding about 2.65 million shares and making NXE roughly 5.4% of the fund’s portfolio. (marketbeat.com)) Bloomberg notes the strategy has outpaced several peers, citing Pierre Andurand’s main fund (about +19% through March 13), RCMA’s Merchant Commodity Fund (~+20% through March 6) and larger multi‑strategy funds that posted single‑digit or low returns. (bloomberg.com))
