“Investors in the energy space would be well-served to try on the thinking caps of the companies that are investing capital directly in the sector — the integrated oil, exploration and production, refining, drilling, and oilfield services companies. These companies are investing on multi-year, and sometimes multi-decade cycles, many with a long-term view of the global supply-demand framework, and a keen eye on the impact of emerging market economic growth.”
Jessica L. Wirth, Portfolio Manager of Putnam Global Energy Fund, offered this insight on the sector for a column in the Portland Business Journal.
Read the complete interview: Sustainable Alpha: The role of energy prices
Read a recent paper authored by Jessica Wirth and Portfolio Manager Steven W. Curbow: Innovation and change in global energy markets
The views and opinions expressed are those of Jessica L. Wirth, Putnam Investments, are subject to change with market conditions, and are not meant as investment advice. John Wrenn, UBS, and The Wrenn Ferguson Group are not affiliated with Putnam Investments or any affiliate.
Consider these risks before investing: International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging-market securities, including illiquidity and volatility. Investing in a limited group of industries means a fund may invest in fewer issuers, can increase the fund’s vulnerability to common economic forces, and may result in greater losses and volatility. The use of derivatives involves additional risks, such as the potential inability to terminate or sell derivatives positions and the potential failure of the other party to the instrument to meet its obligations. Growth stocks may be more susceptible to earnings disappointments, and value stocks may fail to rebound. The use of short selling may result in losses if the securities appreciate in value.
