Is it considered a hedge fund if they manipulate oil price,using it as a bias to buy and sell affected stocks?

Question

Is it considered a hedge fund if they manipulate oil price,using it as a bias to buy and sell affected stocks?

Answer 1

I am playing big on oil trading. I’m from Morgan Stanly, or Goldman & Sachs, or any big firms on the Wall Street.

I bought millions and millions of barrels of oil when they cost $60--$100 a barrel. I expect to make a kill when I sell. But right now it’s only $135 a barrel. (Please tell nobody:  one day on Jan. Goldman & Sachs traded a volume of barrels = US one years import in volume)

So here is my difficulty:

Congress is now investigating on oil speculation, I am afraid of being caught.  But if I sell them right now, I would end up with little or no profit since the trading fees and hedge fund managing cost are not cheap.

I already request my agents send  the spin out to the media, like: “Oil future looks high, expecting to be in the range of $200 a barrel soon. ”   But it does not work price up as fast as I expected.

So my question is this:  How do I corner the market price up in time so not to get caught by Congress.?

For your info:   Prof. Michael Greenberger’s testimony before Senate makes me very nervous.  He said: ‘If speculation were reined in and trading rules tightened, the cost of crude oil could drop 25 percent.” http://www.mcclatchydc.com/staff/les_blu...

My lobby firm can work Republican party to stall passing the laws, but I am not sure for how long. I am very fearful and worried. What are the options for me ? Please advise.

Answer 2

You are one of many that don't understand the scale of the markets and the minuscule power of the hedge funds.

The most successful hedge fund managers don't even try to move markets; they watch where the markets are going and ride along. This is called "trend following". There are two excellent books by Michael Covel that describe how this works in the real world.

Answer 3

NO, a hedge fund is an unregulated investment pool available only to sophisticated investors.  what they invest in completely up to them.  While unregulated, hedge funds are also subject to the same anti-manipulation laws that every one is.  Don't beleive the hype automatically.  tba

Answer 4

Just manipulating something doesn't mean you are a hedge fund, could be a bank, individual, sovereign wealth fund, etc. Here is a short video on what a hedge fund is and is not: http://richard-wilson.blogspot.com/2007/...

- Richard

Richard Wilson

Hedge Fund Group (HFG)

Answer 5

Who are "they"

"They" can not be a hedge fund, by the simple definition of a hedge fund.

Answer 6

Yes hedge funds can manipulate any price. they have a special law which allows them to take unhedged, complicated, risky positions on any commodity and can buy and sell affected stocks.

Just weeks back chocolate companies were accusing hedge funds of playing spoilsport in cocoa prices - find the rest of the story here http://myfinancetimes.com/2008/05/29/cho...

Answer 7

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