Energy funds pumped up


Dramatic price increases are fuelling speculation about big gains

In his 20 years as an analyst and trader in the energy sector, Peter Linder can't remember a market period like the one he saw in the first few weeks of May. Even with crude prices jumping 40% in a year and hitting an all-time high of $41 per barrel in mid-May, a large number of oil and gas producers have seen their stock prices slump sharply.

"Quite frankly, I was flabbergasted," says Linder, who heads the Canada-based DeltaOne hedge fund, which focuses on the energy sector.