Last year’s heightened volatility in energy markets—typically a welcome background for fund managers to make profitable trades—proved to be less than stellar news for energy-focused funds. Energy-exposed funds have been suffering since 2016—first because of subdued volatility, then because of increased volatility. But most of all—because of bets on crude oil and natural gas gone wrong. The wrong-side bets on commodity prices resulted in closures of energy-focused funds, with few replacements entering the commodity…
