Inside the Black(stone) Box: Big Energy Bets

Author:
Publish date:
Updated on

This morning the New York Post takes a look inside the filings of Kailix Advisors—a $1.3 billion hedge fund owned by the Blackstone Group—and discovers that the fund is betting big on energy. Drilling, solar power, ethanol companies—Kailix has a piece of each of them.
The Postturns to James Altucher of StockPickr for an explanation of all this energy investing. Altucher gives two answers: T. Boone Pickens and the peak energy theory.

"It's like they got off the phone with T. Boone Pickens and said, 'Help us out here. We're starting up a hedge fund. What should we buy?,' " said StockPickr Chief Executive Officer James Altucher, who has written about the fund.
He speculated that the diversity of energy bets is really Blackstone's way of wagering on so-called peak oil theory, which holds that the globe's oil supplies are slowly diminishing.

Of course, many eyes will turn to the Kailix filings as a way of taking a look inside Blackstone in front of the $4 billion public offering that is in the works.
Steve's Hot List [New York Post]

Related