US mutual funds that bet wrongly on energy sector suffer big losses

Boston

ONE in four US large-cap mutual funds has increased its stake in energy companies this year and many have suffered heavier losses than their peers as a result of ill-timed bets.

The moves into shares of frackers, refiners and integrated oil conglomerates reflect a gamble that the sector will rebound after rising supply and slowing global growth triggered a nearly 60 per cent slide in crude prices since the middle of 2014. But so far, the gambit has not paid off.