Investing in Crude Oil: The Best Way to Play Oil’s Imminent Rebound

by Louis Basenese, Advisory Panelist
Senior Analyst, The Oxford Club

Billionaire investor George Soros and I don’t normally see eye to eye. He supports drug decriminalization, assisted suicide, America bashing… and a host of other off-the-reserve liberal causes.

I don’t. I’m an old-school Reagan conservative. (Full disclosure – I’m so old school, I named my first born after the late President.)

But here’s the thing. When it comes to investing, great political divides matter little. Because it’s not about getting our guy elected or unashamedly pushing a partisan agenda.

Instead, business – and by extension, investing in businesses – is only about increasing profits, as Milton Friedman put it. And based on the latest SEC filing for Soros’ hedge fund, we both agree on the best way for investing in crude oil’s imminent rebound…

Interested in Making Money

…

h1 style="text-align: center;"bPaulson amp; Co Holdingsbr //b/h1h2 style="text-align: center;"bspan class="Apple-style-span" style="color: rgb(102, 0, 0);"Paulson amp; Co 13F Holdings Analysis | Q3 2008br //span/b/h2This post on Paulson and Co is being written as part of HedgeFundBlogger.com's a alt="Hedge Funds and Investment Securities" title="Investment Securities Holdings" description="Investment securities analysis 13F holdings" href="http://richard-wilson.blogspot.com/2008/09/investment-securities-and-holdings-of.html"Investment Securities Tool/a which analyzes the holdings of hedge fund managers.Please click on the pictures below each section to view the securities held along with their values and current share holdings as of Paulson and Co.'s Q3 2008 filing:br /br /span style="font-weight: bold;"Security Holdings Changes 1 of 3 (Click Image to View)/spanbr /a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://1.bp.blogspot.com/_wM_OZdOMR_Y/ST6sny29uYI/AAAAAAAACoY/pt3BxIP51Mk/s1600-h/Paulson+and+co-1+of+3.JPG"img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 220px;" src="http://1.bp.blogspot.com/_wM_OZdOMR_Y/ST6sny29uYI/AAAAAAAACoY/pt3BxIP51Mk/s400/Paulson+and+co-1+of+3.JPG" alt="" id="BLOGGER_PHOTO_ID_5277845612991986050" border="0" //aspan style="font-weight: bold;"Security Holdings Changes 2 of 3 (Click Image to View)/spanbr /a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_wM_OZdOMR_Y/ST6stJWOltI/AAAAAAAACog/rpMlrrrMGPU/s1600-h/Paulson+and+co-2+of+3.JPG"img style="margin: 0px auto 10px; display: block; ...

h1 style="text-align: center;"bViking Global Investors/b/h1h2 style="text-align: center;"bspan class="Apple-style-span" style="color: rgb(102, 0, 0);"Viking Global Investors LP Q3 2008 13F Holdingsbr //span/b/h2br /This post is being written as part of HedgeFundBlogger.com's a alt="Hedge Funds and Investment Securities" title="Investment Securities Holdings" description="Investment securities analysis 13F holdings" href="http://richard-wilson.blogspot.com/2008/09/investment-securities-and-holdings-of.html"Investment Securities Tool/a which analyzes the holdings of hedge fund managers.Please click on the pictures below each section to view the securities held along with their values and current share holdings as of Viking's Q3 2008 filing:br /br /span style="font-weight: bold;"Added More Since Last 13F Filing (click image to view)br //spana onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://4.bp.blogspot.com/_wM_OZdOMR_Y/ST6mX8gQS2I/AAAAAAAACno/dFKOvogV1TQ/s1600-h/Viking-Global-Investors-Added+More.JPG"img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 220px;" src="http://4.bp.blogspot.com/_wM_OZdOMR_Y/ST6mX8gQS2I/AAAAAAAACno/dFKOvogV1TQ/s400/Viking-Global-Investors-Added+More.JPG" alt="" id="BLOGGER_PHOTO_ID_5277838743633415010" border="0" //aspan style="font-weight: bold;"New Holdings (1 of 3)/span span style="font-weight: bold;"(click image to view)/spanbr /a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_wM_OZdOMR_Y/ST6liHVebiI/AAAAAAAACnA/leNCGjSHd20/s1600-h/Viking-Global-Investors--New+Holding1.JPG"img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 274px; height: 169px;" ...

Testimony QuotesCongressional Hearing QuotesQuick Links: Hedge Fund Testimonial VideosHere are a series of quotes from yesterday's testimony.``We do not need greater regulation of hedge funds,'' said Kenneth Griffin, founder of Citadel Investment Group LLC in Chicago. ``We've not seen hedge funds as a focal point of the carnage.''Soros, founder of Soros Fund Management LLC, cautioned against ``ill-considered'' rules because this industry is reeling from market losses and client defections.``I believe our tax situation is fair,'' Paulson said. ``If your constituents, whether a plumber or a teacher, bought a stock and if they held that stock for more than a year they would pay a long-term capital gains rate.''``This isn't just about sophisticated, high-stakes investors anymore,'' Davis said. ``Institutional funds and public pensions now have a huge stake in hedge funds' ...

Caxton AssociateseCaxton Associates Hedge Fund HoldingsThis post is being written as part of HedgeFundBlogger.com's Investment Securities Tool which analyzes the holdings of hedge fund managers.Up next in the macro hedge fund tracking series we have Caxton Associates, ran by Bruce Kovner. Taken from Wikipedia, Kovner's bio is as follows: "Kovner's first trade was for $3,000, borrowed against his MasterCard, in soybean futures contracts. Realizing growth to $40,000, he then watched the contract drop to $23,000 before selling. He later claimed that this first, nerve-racking trade taught him the importance of hedge fund risk management. In his eventual role as a trader under the legendary Michael Marcus at Commodities Corporation (now part of Goldman Sachs), ...

Soros Fund ManagementSoros Fund Management | Geroge Soros 13F HoldingsThis post is being written as part of HedgeFundBlogger.com's Investment Securities Tool which analyzes the holdings of hedge fund managers.In Soros Fund Management's most recent 13F filing, Soros bought over an $800 million stake in Brazilian oil giant Petroleo Brasileiro (PBR). At the time, this massive purchase represented 22% of his entire portfolio and was his largest holding. And, interestingly enough, PBR is down nearly 30% since his purchase. Guess we'll have to wait til the next round of 13F's (next quarter) to see whether or not he still holds. Soros also made a big Potash (POT) purchase, increasing his position by over 2550% (from 65,500 shares to 1,747,707 shares). In another move, ...

George SorosGeorge Soros Hedge Fund NotesThe following piece on System Absolute Return is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.______________________________________________

Billionaire George Soros's hedge fund may have lost at least $120 million on its stake in Lehman Brothers Holdings Inc., mostly acquired in the second quarter, as the investment bank suffered its worst financial result.

Soros Fund Management LLC, which manages $20 billion, purchased 9.47 million shares, or about 1.4 percent of New York- based Lehman, between March 31 and June 30, according to a filing with the Securities and Exchange Commission. The losses could be as high as $380 million, depending on when

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