Investec Energy duo take aggressive weighting in US gasBy John...

Investec Energy duo take aggressive weighting in US gas
By John Kenchington

March 28 2010 10:45 |

Investec Asset Management energy duo Mark Lacey and Jonathan Waghorn have adopted an aggressive weighting in US gas as they expect it to outperform oil in the next few years.

The former Goldman Sachs traders see upside of as much as 90 per cent in some of the gas stocks in their Luxembourg-based Investec Global Energy fund, as current gas prices are unsustainably low.

Mr Lacey says:We expect global gas consumption to grow at a higher rate than oil consumption over the next 10 years. Global gas consumption growth rates have been almost three times that of oil over the last 10 years.

The managers are targeting stocks such as Range Resources, the Australian small-cap oil and gas explorer, which they believe looks cheap.