Investing in Energy Summit
As part of the Global Reuters Energy and Climate Summit, Reuters Wealth management editor Lauren Young anchored a lively debate on June 16 in New York featuring Andrew Lees, Manager of the $2.1 billion Invesco Energy Fund; Robin Wehbe, Lead Portfolio Manager of the $32.8 million Dreyfus Natural Resources Fund; Marc Morano, Head of ClimateDepot.com, a website that debunks the theory of climate change; and Phil Weiss, Energy Analyst at Argus Research, an independent equity research firm.
What’s the best way to play the energy market now? Look in the oil patch. Invesco’s Lees, whose fund is a Lipper Leader, said the global oil shortage will result in increased exploration and production spending by major oil refiners, which bodes well for companies such as Halliburton, Schlumberger and Baker Hughes. (They are all top holdings in his portfolio.) Wehbe, whose fund is also a Lipper Leader, is a fan of service companies that will benefit from rising demand for oil in Asia and other emerging markets. “Oil could be going higher and making new highs,” he says.
As for natural gas, the panelists were most excited about companies that play in the compressed natural gas market. But none of them expressed much enthusiasm for alternative energy – such as wind and solar — from an investment perspective.
The panel, which part of the Lipper Investment series, attracted more than 100 attendees and was presented by Darren Duffy, global head of strategy and business development at Lipper.
Interview with Andrew Lees:
Interview with Robin Wehbe: