Junior energy firms drag down fund results in first half

What are we looking for?

How energy funds are faring amid falling oil prices.

Crude oil futures in New York plunged to the $80 (U.S)-per-barrel range in June on slower global growth after surging to a high of $110 in February.

The screen

We looked for the energy-focused funds that were hit hardest in the first six months of this year. U.S. dollar, segregated and duplicate versions of funds were excluded.

What did we find?

Funds loaded with junior energy firms took the worst beating.

While depressed prices for oil and natural gas hurt all energy producers, smaller firms usually suffer the biggest damage because they’re perceived to be riskier than their larger-capitalization cousins. (Of course, when prices rebound, smaller firms tend to enjoy a larger bounce than large firms.)

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