Wednesday, September 3, 2008

Commodity liquidations pressure prices

Commentators have spent the last few days discussing whether or not there are liquidations of some commodity hedge funds, which may be part of the pressure on the sector. The selloff is certainly in force in the energy markets, and oil drillers continue to drift lower. In spite of the selloff affecting my oil drillers today, there are a few gainers in my portfolio. The standout is First Marblehead (3.3% of portfolio), which is up strongly, and on good (1.5-2x average daily) volume. I'd love to see a decent recovery in that name, as I tripled my position in the 3s.