Remember Brian Hunter, Amaranth’s head energy trader? He’s the 32 year-old whose risky bets on natural gas triggered one of the biggest hedge fund meltdowns in history. Well, he’s back and starting another hedge fund; this time with a “fresh approach to commodities.” Called Solengo Capital, the new fund may launch as early as this summer - but long before this gorilla trader enters the room, our own Eric Bolling has done some investigating and learned his strategy.
Eric Bolling says the news has been out for about 2 weeks. Then he shows a March-April spread chart. Eric continues that when the news broke that Hunter’s coming back, the spread chart jumped.
Dylan explains the chart indicates traders think there will be very expensive prices for gas or oil over the Winter cycle, simply because Brian Hunter is getting back into the game.
What’s exclusive about this, says Dylan, is that Hunter hasn’t even put a position on the books.
Tim Strazzini bristles at the reasoning and he asks what are the prospects that he might have different opinions when he enters the market again?
One hurricane and the trade works, Eric says. He thinks Brian Hunter moves markets and admits he’s bought this play.
In conclusion, Eric says investors should get on the natural gas band wagon – and recommends ONEOK (OKE) – a natural gas processor because he likes the chart. His other picks are Duke Energy (DUK) and Dynergy (DYN).
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On MAR 27, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Strazzini Owns (MO), (T), (VZ), (WMT), owns puts in (EEM, is short puts in (AUY)) Bolling Owns (NMX), (ICE), Natural Gas, Gold, Silver, Soybeans is Short Corn.Macke writes for Minyanville.com