Marc Lasry is a hedge fund manager, who along with Sonia. E. Gardner founded the hedge fund, Avenue Capital. Lasry is also the Chairman and CEO of Avenue Capital. Lasry pointed at plunging oil prices, which is currently at $80 per barrel, as an opportunity to cash in with the energy stocks. In a recent CNBC interview, he talked about significance of oil prices and energy stocks.
Lasry feels that the crude oil prices has disrupted most of the energy companies and he feels that this is the right time to buy the energy stocks since a discounted price on the stock is possible at the moment.
“From Macro stand point you want to be in energy. […] because of what is happening to crude oil prices over the last 30 days a number of companies are having issues on the energy side and again what we are trying to do is buy the debt at a discount, so that from a macro standpoint you want to be investing in energy, because long term it is actually very good but now short term you have the ability to invest and buy that anywhere around 60 to 70 cents on the dollar,” Lasry mentioned.
Lasry said that he would buy the equity in long term. He mentioned that he prefer to go from 60 to par or 70 to par and take little risk. He feels that buying equity today might have higher risk, since he feels that number of equities have gotten hit between 25-50% because of high prices coming in on oil side. He said that he would invest in companies which are strong from a credit stand point.
Lasry refused to mention the names of these companies that his firm is investing in, due to the compliance restrictions. He added that equity of these companies is trading pretty cheaply and he feels that if the company has the ability to access the capital, the equities might be worth quite a bit.
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