Energy Picks from a Top-Rated Fund Manager


As gasoline prices climb, how can investors make money in the energy sector? In Tuesday’s “Best Trade Now” segment, Shawn Reynolds, top-rated fund manager with the Van Eck Global Hard Assets Fund, appeared on “Morning Call” to offer two energy names.

“We think we’re in the middle of a slow-burning energy crisis, which is being caused by underinvestment supply over the last thirty years, combined with demand inertia that is not going away,” said Reynolds, who lists Newfield Exploration and Frontier Oil as his top picks.

“Newfield Exploration has a lot of leverage to North American natural gas, and is undergoing transformation that should result in multiple expansions,” said Reynolds. Newfield is also transitioning to a longer reserve production company, he added.

According to Reynolds, Frontier Oil is well placed to benefit from crude oil coming from Canada. “FTO’s refineries take low-cost crude and produce high-value products,” said Reynolds.

The Fund -- and The Stocks That Fuel It