Hedge Funds Plastics
Top Hedge Funds Investing in Plastics and Raw Materials
Hedge funds are betting big on plastics and raw materials. Hedge fund managers James Dinan and David Einhorn just a few of many hedge funds who have developed a recent investment strategy of investing in firms like LyondellBasell Industries, Penn West Petroleum and Repsol YPF SA.
A wave of managers snapped up shares of LyondellBasell Industries, which makes chemicals like propylene and polyethylene, the stuff that goes into plastics.
The popularity of plastics and raw materials signals that hedge funds are diversifying commodity bets beyond gold, the darling of 2010 returning 30 percent, as inflationary pressures seep into food and energy.
Top hedge funds' bets on LyondellBasell and other raw materials producers like Penn West Petroleum and Repsol YPF SA suggest investors are seeking out commodity-related plays as the global economy wiggles out of a bruising recession.
LyondellBasell -- the third-largest chemical maker in the United States -- was certainly hurt by the downturn, declaring bankruptcy in early 2009.
But after LyondellBasell emerged back onto the public markets in October, Dinan's York Capital Management and Einhorn's Greenlight Capital, along with Andreas Halvorsen's Viking Global Investors and Thomas Steyer's Farallon Capital Management disclosed their stakes in LyondellBasell.
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