It's going to be very interesting few monthsExcerpt: Resources...

It's going to be very interesting few months

Excerpt: Resources fund Perennial Partners

What are some recent changes you have made to the fund?

We’verecently increased our exposure to east coast domestic gas. So far this winter,there’s been two instances of gas prices spiking by 30 to 50 per cent as soonas the wind stopped blowing. This is not normal, and is indicative of a gasmarket trending into deficit.

We’re on the right side of thistrade, but I feel a bit like the two blokes from Brownfield Capital in The Big Short after Brad Pitt sets them straight on what’s going to happen to millions of Americans when the property market collapses.

Thelooming energy crisis on the east coast is going to hurt, particularly the lesswell-off. The key exposure here is Cooper Energy, but we have a few others aswell.