URA - Caxton adds fuel to the uranium fire with ~$250m purchase of physical uranium

Last November it appeared retail investors were beginning to tip the scales in the physical uranium market. Newly introduced Sprott Uranium Trust (OTCPK:SRUUF) units allowed retail investors to indirectly purchase physical uranium; the trust acquired ~52m lbs of uranium in the past nine months, or around a quarter of global, annual demand. Thursday, Caxton Associates, a multi-billion dollar macro hedge fund, filed to disclose that the company owns over 18m of the Trust's 209m units. With Cameco (CCJ) calling for an inflection in the contracting cycle, and Congress looking to ban ~1/3 of the world's uranium supply (URA), it may be that hedge funds are sensing an opportunity to squeeze prices higher before selling to price-insensitive utilities.

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Caxton adds fuel to the uranium fire with ~$250m purchase of physical uranium