Uranium Heats Up, and Hedge Funds Score

The turnaround in the nuclear fuel, whose price declined sharply after the 2011 nuclear meltdowns at Fukushima, Japan, has bolstered shares of miners including Cameco Corp. CCJ -0.57% and Denison Mines Corp. DNN -1.23% of Canada, and Texas-based Uranium Energy Corp. UEC -1.82% That boost has benefited hedge funds including Segra Capital Management and Sachem Cove Partners, which have been betting that uranium would bounce back.

Traders say the surge in uranium, an element that when enriched is manufactured into rods that fuel nuclear power plants, in some respects echoes the 2021 rise in shares of GameStop Corp. and AMC Entertainment Holdings Inc. Hedge funds and family offices are among those to have invested in the newly listed trust. Traders say interest from individual investors is also helping to drive prices in a market that largely comprises private agreements between buyers and sellers, rather than the open price discovery of […]

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