Glenn Dubin, chairman of Highbridge Capital Management LLC, said the “super-cycle” in commodity markets is over as demand from developing nations has declined and supply has increased.
Prices have settled into a trading range after “hyperbolic” market moves, Dubin said in an interview with Bloomberg Television’s Stephanie Ruhle at the Robin Hood Investors Conference in New York today. He said small investors aren’t investing significantly in commodities.
Dubin, 56, said he is “bullish” on energy markets. He and investors including billionaire Paul Tudor Jones last year bought an energy-trading unit that was a joint venture formed by Highbridge and Louis Dreyfus Group. The unit was renamed Castleton Commodities International. Highbridge, a New York-based alternative asset manager that has $29 billion in assets, is owned by JPMorgan Chase & Co.
Dubin said independent energy merchants are the right business model to take advantage of market opportunities.
“Having long-term capital and being able to be an owner and operator of both assets as well as a trading company gives you a competitive advantage,” he said.