Hedge fund believe in shippingstocks
Stocks in the shipping business are being traded at the lowest prices since 1999 adjusted for shipyard costs, and over the next couple of years stocks in the shipping industry will increase by 50-100 per cent.
This belief stems from a hedge fund manager who specializes in shipping stocks from Tufton Oceanic. The hedge fund initiated shipping investments last year.
The interest for stocks in the shipping business has been very low for several years, but in the third quarter last year, hedge funds started purchasing shipping stocks for 675 million dollars and for a probably more in the last quarter of the year. This shows that the price on stocks will go up and that there is hope for a rise in stock purchase, Reuters writes.
"Free from estimated shipyard costs the price on stocks are at the lowest level since 1999, "said William Homan-Russell, head of shipping in the 1.5 billion dollar big hedge fund and investor in the shipping business, Tufton Oceanic.
He expects stocks in the shipping business to rise by between 50 and 100 percent over the next two years.
Source: Reuters / Maritime Denmark