Private money managers who invest in energy think the price of oil will continue to fall—even as crude hit a five-year low on Tuesday—but some still see opportunity in related companies.
"Oil is going to a new price point because of the revolution in production," said Bill Perkins, chief investment officer of energy-focused hedge fund firm Skylar Capital Management.
Perkins believes the price of crude could fall as low as $45 a barrel. He is personally short, a bet that the price of the commodity will drop. He believes oil will settle between $45 and $80 a barrel in the next year.
At the same time, Perkins is individually invested in an undisclosed oil-related business—Skylar focuses on natural gas—as he believes owning strong companies in the sector is a good bet because of continued demand and cheaper production.
"Companies are harnessing amazing new technology to destroy the traditional energy value chain," Perkins said. "There's a lot of money to be made on that."