Oil patch hedge fund on stream

Date: Tuesday, October 1, 2002

DeltaOne Energy Fund LP, a hedge fund is being formally launched today. The fund will buy short and long in commodities and stocks, but will focus on North American oil and gas producers. Mr. Molyneaux, research director at FirstEnergy Capital Corp., said the possibility of volatile markets in gas and oil makes this fall an excellent time to be launching a hedge fund. A fierce debate is raging among oil futures analysts as to whether crude prices -- sitting above $30 a barrel on the Nymex -- are being sustained by war fears or by fundamental supply and demand factors. Peter Linder, one of the oil patch's most outspoken research analysts and a senior energy strategist for DeltaOne Energy Fund LP, won't be the portfolio manager of the DeltaOne fund and its $3-million in startup capital, but said he will be the guy making the calls on overall trends. He admitted yesterday that he may have to tone down his style somewhat, now that he has moved from adviser to actor. "The biggest difference will be to be more cautious, more prudent," he said.