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Traders dump energy hedges amid low hurdle for earnings

Investors are betting that forecasts of 62% profit fall more bearish than reality

CAUGHT OFF-GUARD: Energy companies in the S&P 500 beat consensus earnings estimates by 33 per cent in the first quarter, more than three times any other sector, data compiled by Bloomberg show.

New York

INVESTORS see history repeating itself for energy companies this season, speculating that profit forecasts are again so low that there's little need to hedge against a miss.

Implied volatility on an exchange- traded fund tracking energy companies is at its lowest in 14...

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