The next leg of Lazard's energy play

This time last year, Dr Philipp Hofflin, portfolio manager and analyst at Lazard Asset Management, argued that “if you aren’t long energy now, you probably never will be.”

Twelve months on, it is apparent that Hofflin and the Lazard Australian Equity team nailed it.

Coal prices have quadrupled, crude oil has doubled with Whitehaven Coal and Woodside shares, Lazard's two preferred energy plays, rallying ~300% and ~40%, respectively.

Investors in The Lazard Select Australian Equity Fund will have welcomed these results with the fund posting a 12-month return of ~47%.

Energy prices are also a driver of inflation, which is arguably the hottest topic of debate amongst market participants right now. As Hofflin told me:

"If the oil price doubles again from here to $170, for example, I think that will cause a global recession because it just destroys demand when prices go that high."
In this interview, Hofflin explains Lazard's outlook for energy prices and why they have been tilting their energy exposure towards gas. He also provides some thought-provoking insights on the broader risks that elevated energy prices create for the global economy.

Click on the player below to watch the interview or access an edited transcript below.
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