Source: Energy Fund Started By Ex-Enron Traders Has Closed Down, Affecting Natural Gas Futures
Natural gas fund Cogent Energy Investment Management LLC has been shut down, according to a source intimately involved in the space. Traders Benzinga spoke with are attributing Tuesday's natural gas futures performance to the closure.
The commodity responded as reports of Cogent's closure circulated, spiking from an intra-day low just under $1.69 to a high of almost $1.77. Natural gas futures were volatile, up about 5 percent on the session.
The fund, created by three former Enron traders according to Bloomberg, was launched in January 2013. Founders Fletcher Sturm, Robert Benson and Frank Ermis also worked at JPMorgan Chase and Barclays before starting Cogent, Reuters reported in 2012.
Reuters also reported reported Cogent management was "set to close shop."
In a comment to Benzinga, Cogent denied the reports, stating it is not closing its natural gas fund.
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