SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Strictly: Drilling and oil-field services
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SliderOnTheBlack who wrote (66368)5/17/2000 2:51:00 PM
From: jim_p  Read Replies (1) of 95453
 
Slider,

It is very hard not to take profits here, but I don't because we continue to see a steady flow of new money coming into the patch.

One thing that we have not talked about is how funds operate. The oil and gas sector is very small today compared to other sectors. Most of the funds are managed by an asset fund manager, who selects the stocks he wants to invest in.

Most if not all of the funds have an Asset Allocation Committee that only meets once a year. This is the time of year that the committee's meet to determine the percentage of the funds assets that will be allocated to each sector. Over the last several years most of the funds have under weighted the patch because they have been burnt so badly in the past. This year I would venture to guess that we will see a lot of the Asset Allocation Committee's increase the allocation of funds that a fund manager is able to invest in the patch.

A very small increase from 5% to say 7% of a large fund can have an incredible effect on our small sector.

I believe we will continue to see money coming into the patch as a result of the funds going from an under weighting to a over weighting of funds available to invest in the patch.

Jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News