Q: What is your outlook for natural gas and specifically,an investment in HJN?
5i Research Answer:
Nat gas is always tricky to predict as it can be quite weather-dependent. After a February spike, gas is down about 8% for the year now. We would see a range of US$3.25 to $4.00 or thereabouts, and would consider the current price ($3.33) near the low end of what we might expect this year. The symbol HJN given does not work, so we are assuming it was meant to be HUN, a $9.5M ETF tied to natural gas futures. Fees are 0.89%, three-year annualized is -23.3%, and it is up 3.3% YTD. First we would consider it too small and illiquid for serious consideration. Second, fees are fee. It should move with gas prices but we would not be comfortable endorsing it right now.