Source: Wall Street News

Is the "nuclear power heat" cooling down?

On December 23, Bloomberg reported that recently, with a strong rebound in nuclear power Stocks, some hedge fund managers have begun to be wary of their high valuations and have reduced their exposure to nuclear power Stocks. For example, funds like Tribeca Investment Partners and Segra Capital Management have recently cut back on their bets on nuclear technology developers and utility companies.

Guy Keller, the portfolio manager at Tribeca, said:

"What I am worried about is that some Stocks have already risen too quickly, so it is wise to 'reduce risk.'"

However, Keller also emphasized that he would never establish a short position:

"Because you could suffer significant losses from an announcement regarding a Datacenter."

As one of the hottest Energy themes this year, nuclear energy benefits from the rise of AI and the expansion of Datacenters that require a large amount of Electrical Utilities, while more environmentally conscious investors are beginning to see nuclear energy as a necessary component of the low-carbon energy transition.

However, with the significant rise in Nuclear Power stocks, Wall Street has become more cautious. JPMorgan's Analyst team released a 63-page report in October warning that nuclear energy stocks may be subject to speculative risks, even coining a specific term for this phenomenon: "NucleHype (nuclear energy hype)."

Nonetheless, some hedge fund managers still see new opportunities. Keller stated that his Fund mainly bets on Uranium Assets, while Segra Capital's portfolio manager Arthur Hyde said:

"The fragile and dispersed" Uranium supply chain "should create positive price momentum for this Commodity by 2025."

编辑/jayden