Hedge funds buy into N America O&G firms

New York

ELLIOT Management Corp and Omega Advisors Inc are among activist hedge funds buying stakes in North American oil and gas producers whose stock has fallen because of weaknesses exposed by the collapse of energy prices.

It is a bet on a view that is contrary to some analysts: that oil prices are poised to rebound. This month, Citigroup cut its crude price forecasts, saying that West Texas Intermediate could go as low as US$20 a barrel before recovering. West Texas crude is currently at about US$51 a barrel, up from a low of US$43.58 in January.

Still, oil prices are down 50 per cent from last June, leaving many energy company stocks looking cheap. A Reuters review of regulatory filings, as well as interviews with more than two dozen co…