Forget AMC and GameStop, the hottest trade for hedge funds now is oil

Oil storage containers are seen, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021.
Lucy Nicholson | Reuters

While a lot of the market's attention is focused on volatile stocks like AMC and GameStop, many hedge funds are zeroing in on another trade: oil.

The commodity has been on a tear with surging demand as the global economy reopens.

Brent is at a two-year high and WTI crude is at levels not seen since October of 2018.

Maglan Capital, a New York-based hedge fund, has the commodity as its top position. In December 2020 when oil was in the high $30s, just as the FDA was issuing emergency authorization for the use of vaccines, co-founder David Tawil correctly predicted prices would double. 

He's now calling for oil to hit $100 a barrel by the end of the year.

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