Carlson Plans Hedge Funds To Benefit From Oil Slump

Dec 18 2014 | 11:54am ET

Carlson Capital is planning a trio of hedge funds to capitalize on the slump in oil prices.

The funds will focus on the debt and equity of energy companies.

“This is not an attempt to call the bottom in the price of crude—in the short term the price can clearly head lower,” founder Clint Carlson wrote in a Dec. 15 letter to clients seen by Bloomberg. “Regardless of the short-term direction of the commodity, there will be dislocations that can be profitably exploited.”

Dallas, Tex.-based Carlson, with $9 billion in assets under management, said oil market uncertainty represents an opportunity to make long-term energy investments "at distressed valuations well below those seen at the depths of the financial crisis.”

Oil is trading below $55 a barrel, a 45% slide, on slow world demand, rising North American production and OPEC's determination to maintain current production levels.

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