Sun, May 16, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Corona Fighters Report 57: Asset managers who delivered in the downturn

Wednesday, July 15, 2020

amb
B. G., Opalesque Geneva:

This is our regular report on hedge funds and alternative asset managers who are successfully protecting assets and outperforming the markets during the first months of 2020.


Based in the U.S. Virgin Islands, with offices in Houston, Skylar Capital Management L.P. is the trading manager for the energy fund Skylar Capital Energy Global Master Fund L.P., and it has done very well with its natural gas trading so far this year.

The founder, William O Perkins III, has more than 20 years of experience in trading and risk management. He launched Skylar after a successful 10-year tenure as a senior portfolio manager at Centaurus Energy, a multibillion-dollar hedge fund, where he generated over $1bn in profit.

The Cayman-based fund invests in energy with an emphasis on natural gas and power. Skylar employs a fundamental, discretionary and analytical approach to trading the liquid energy markets with a focus on North American and European natural gas.

Since its inception in September 2012, Skylar has generated over 350% cumulative returns for investors. It is up +17.5% YTD (to end-June) after a positive Q1, according to documentation seen by Opalesque.

"Skylar employs a fundamentals-based strategy with a specific focus on natural gas and power," Perkins explains to Opalesque. " At the beginning of 2020, that strategy led the fund to hold a net short position across the natural gas curve in both the U.S. and Europe. Market balances were loose (i.e. oversupplied) even after accounting for warmer than normal temperatures across the northern hemisphere. The strategy worked well but underlying market conditions became quite uncertain as threats of COVID-19 and a global slowdown took hold."

By mid-February, Perkins positioned the portfolio to anticipate dramatic declines in energy demand due to the pandemic. However, by mid-March a unique factor began to emerge from Skylar's research: an equal, if not greater, decline in supply.

Price drops for energy also came with rapid decreases in supply as energy producers of oil and gas were forced to pull back production volumes. After years of general oversupply, the global gas market looks to be much tighter in 2021 than in a number of years. Pandemic-induced demand declines have also led to a 10% decline in U.S. natural gas production. However, a combination of tightening credit for producers, reduced associated gas from oil plays, and natural declines from gas shale production will see a tighter (i.e. undersupplied) market emerge into next year.

"Domestic and European natural gas prices may have to adjust upward to incent enough new supplies," he adds.

William O. Perkins III will present in our upcoming webinar, Corona Fighters Episode 4, on Tuesday, July 21st at 10 am EST.


Natural Gas (Henry Hub)

Source: Business Insider


***

New eBook: The Corona Fighters COLLECTION - A Handbook for Investors

200+ funds that were up or protected assets in Q1 2020: A Compendium of Opalesque Corona Fighters Report #1 to Report #52

Download here: www.opalesque.com/ebook

***

Disclaimer: This is not investment advice. Opalesque has not verified this information and gives no warranty of accuracy or completeness. Past performance is not indicative of future results. See our Terms & Conditions for more information.

***

WEBINARS:

Webinar: The Corona Fighters Episode 4

Meet five more asset managers who delivered during the meltdown.

Time: Tuesday, July 21st, 10 am EST
Details and registration: www.opalesque.com/webinar/


Past webinars:

Meet 15 fund managers and learn how and why their strategies delivered positive returns and/or protected capital during the Corona led market meltdown! Each webinar lasts an hour and features five managers.

"The whole Corona Fighters program has been extremely educational for me and a great opportunity to learn more about hedge funds and compare/contrast their approaches." (Single Family Office Principal)

Video replays of Opalesque's past webinars can be found here: www.opalesque.com/webinar/#pastwebinar

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S.: Hedge funds facing Biden tax threat grab toehold in Puerto Rico[more]

    From Bloomberg: With Democrats pushing for higher taxes on the richest Americans to fund President Joe Biden's infrastructure and climate initiatives, hedge fund managers are taking refuge in Puerto Rico. ExodusPoint Capital Management and Millennium Management have established subsidiaries on t

  2. SPACs: SoftBank-backed Better to go public in $7.7bn SPAC deal, Turmoil in the SPAC market, SPACs that raise a lot of money will struggle to find startups, Biotech firm Ginkgo to merge with Harry Sloan-led SPAC in $17.5 billion deal[more]

    SoftBank-backed Better to go public in $7.7bn SPAC deal From PE Insights: SoftBank Group Corp-backed Better HoldCo said on Tuesday it will go public through a merger with a blank-check firm sponsored by investment firm Novator Capital, valuing the mortgage startup at $7.7bn. As p

  3. Hedge fund Tiger Global beats out Silicon Valley VCs, invests in 110 startups so far[more]

    From Business Insider: Tiger Global, a $65 billion hedge fund, is squeezing out venture capital firms to invest in startups. The company has taken part in 110 startup financings so far in 2021, according to PitchBook. Venture capitalists say its speed and sky-high valuations lead to its success

  4. SPACs: Why the 'SPAC Mafia' hedge funds aren't worried about SEC regulation, Bill Ackman's cagey SPAC update sends shares soaring as investors dream up a mega-deal, Arqit raising $400m with a SPAC to launch quantum encryption satellites in 2023[more]

    Why the 'SPAC Mafia' hedge funds aren't worried about SEC regulation From Business Insider: After a yearlong bout of SPAC mania, the red-hot market for blank-check companies is cooling down as regulators direct their attention to it. March was a record-breaking month for special-purpose

  5. Private strategies pay off for Tiger Global, other hedge fund titans[more]

    From Institutional Investor: Hedge funds' strategies to invest in private markets have been driving returns at a number of firms this year. Third Point, Greenlight, Tiger Global, and Maverick received big boosts in the first quarter from their private investing strategies. That shouldn't be a