Uranium play is starting to heat up, with hudge funds across the world sinking funds into the green rocks.
The thesis is simple, the world is going to need a lot more nuclear energy to meet ambitious climate goals by mid-century.
The investment in nuclear energy is ramping up at a breakneck pace, especially in China and in the developing world.
While debate in countries like Germany and Australia on the merits of nuclear energy is still (weirdly) debated, nations like China, Japan, Eastern Europe, Sweden and the Middle East are all investing in nuclear tech.
The US, Canda, France and the UK are also moving ahead, although more cautiously with nuclear restarts and SMR tech developments.
Bloomberg reports hedge fund managers are positioning long for the uranium story to continue to play out.
The uranium play has already proven highly profitable since at least 2020, with the uranium price soaring over 125% since then.
The price of uranium is currently at a 15-year high, around $74.5 a pound.
An article published in Bloomberg this week said Hudge Fund managers from Sydney to New York were positioning for the play.
Several hedge fund managers have started ratcheting up their exposure to uranium stocks, as they bet on significant price gains.
Terra Capital’s Matthew Langsford, Segra Capital’s Arthur Hyde and Anaconda Invest’s Renaud Saleur are among managers building bets on uranium companies such as Energy Fuels Inc., Ur-Energy Inc. and NexGen Energy Ltd.
Langsford, who runs a A$175 million ($110 million) natural resources fund at Sydney-based Terra Capital, says the outlook for uranium prices means “the equities could see dramatic upside, 50%, 100%, possibly more.”
