Hedge Fund Behind Amazon-MGM Deal Amasses Big Bet on Uranium

Hedge Fund Behind Amazon-MGM Deal Amasses Big Bet on Uranium

Venturing into the uranium market, which is much smaller than oil or gold markets, is unusual for a firm that typically invests in corporate debt. It is another example of money managers straying into esoteric markets in search of returns after a yearslong run-up in stocks and slide in a bond yields.

Anchorage was recently in the spotlight after scoring about $2 billion in paper profits from Amazon’s deal to buy MGM in May. The hedge fund became MGM’s biggest shareholder after the Hollywood studio emerged from bankruptcy in 2010.

Anchorage’s physical uranium holdings are also a rarity because Wall Street firms don’t typically own physical uranium. Most investors bet on uranium prices by buying shares of mining firms , or through companies like Yellow Cake PLC., which acts as an exchange-traded fund.

In the 2000s, investors piled into uranium trades, helping to power a run-up in prices that peaked in […]

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