Hedge Fund Managers Bet on Uranium Stocks as Prices Rise

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Several hedge fund managers are increasing their exposure to uranium stocks, expecting significant price gains. The demand for nuclear power is driving up uranium valuations, with prices having risen 125% since 2020. The International Energy Agency estimates that global nuclear capacity needs to double by mid-century, further fueling the demand for uranium. However, investments in uranium remain controversial.

-- 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.

That target is underpinned by demand in Europe, Asia and Africa for nuclear reactors. Old facilities are getting their lifespans extended, while China is continuing to build out its nuclear fleet, all of which is fanning demand for the uranium needed to power those plants. Nuclear power doesn’t emit carbon dioxide, and has even been defined as green in the European Union’s taxonomy of sustainable assets. But it comes with a number of risks.

Not all uranium stocks are equal, though, and a nearly 30% gain in the Global X Uranium ETF this year has some hedge fund managers looking for opportunities to short companies they think are less likely to do well. Saleur of Anaconda, for example, says he’s now looking into shorting Cameco Corp. as a hedge, after it gained more than 70% this year. But he’s long miners including Energy Fuels Inc. and Ur-Energy Inc., he said.

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