Cold Snap Boosts Energy Funds

The fund's largest holdings are Range Resources (RRC Quote) at 8.8% of assets, Plains Exploration (PXP Quote) at 8.3%, and Valero Energy (VLO Quote) at 7.3%.

Top-Performing Energy Funds Total return for the week ended Jan. 25
Fund	Ticker	Rating	Fund Type	1 Week Total Return
Fidelity Select Natural Gas	FSNGX	C	Open-End	5.16%
Fidelity Sel Energy Service	FSESX	C	Open-End	4.66%
Profunds Oil & Gas Ultrasec-Inv	ENPIX	C	Open-End	4.45%
Excelsior Energy & Nat Res	UMESX	C-	Open-End	4.30%
Van Eck Global Hard Assets-A	GHAAX	B-	Open-End	4.17%
Fidelity Sel Natural Res Pt	FNARX	B-	Open-End	4.13%
Profunds Basic Mat Ultrasec-I	BMPIX	D+	Open-End	4.11%
AIM Energy Fund-Inv	FSTEX	B-	Open-End	4.11%
Fidelity Select Energy Prtf	FSENX	B-	Open-End	4.01%
Fidelity Adv Energy Fund-T	FAGNX	C	Open-End	3.97%
Source: Bloomberg

Several winning positions contributed to the Fidelity Select Natural Gas fund's remarkable one-week performance. The biggest gainer in its portfolio was Evergreen Energy (EEE Quote), which skyrocketed 18.4%.

This company may greatly benefit from any push toward the use of "clean-coal" technology. It has a process that extracts moisture and mercury to create coal that burns more efficiently while emitting fewer greenhouse gases; this could be in great demand if "clean coal" is mandated by law. Unfortunately, Evergreen Energy accounts for only 0.686% of the fund's assets.

Range Resources, the Fidelity Select Natural Gas Portfolio's largest position, jumped 9.06% on the announcement that its proved reserves of natural gas increased by 25%.

Representing 2.6% of fund assets, another large holding that had a good week is Talisman Energy (TLM Quote), up 9.27%. The stock rose on news that noncore reserve assets the company is divesting may be worth $850 million, thus increasing the potential size of stock buybacks.

Second on the list of top-performing funds is the (FSESX Quote)Fidelity Select Energy Service Portfolio, with 64.8% of assets oil and gas services, 30.2% in oil and gas and 3.5% in engineering and construction.

Its largest holdings are National Oilwell Varco(NOV Quote), Noble Corp.(NE Quote) and GlobalSantaFe (GSF Quote), at 8.4%, 6.5% and 6.2% of assets, respectively.

The holdings that rallied the most during the week are Vestas Wind Systems (WDRY Quote), which rose 8.86%; Hydri(HYDL Quote), up 8.40%; and Schlumberger (SLB Quote), which gained 8.15%.

Worst-Performing Energy Funds Total return for the week ending Jan. 25
Fund	Ticker	Rating	Fund Type	1 Week Total Return
ING Risk Managed Natural Res	IRR	U	Closed-End	-2.23%
Blackrock Real Asset Equity	BCF	U	Closed-End	-0.77%
Fidelity Sel Paper & Forest	FSPFX	E-	Open-End	0.67%
FBR Gas Utility Index Fund	GASFX	A+	Open-End	0.91%
Van Kampen Utility Fund-A	VKUAX	A+	Open-End	1.11%
Amer Cent Utilities Fund Inv	BULIX	A+	Open-End	1.24%
Morgan Stanley Utilities-A	UTLAX	B+	Open-End	1.30%
AllianceBernstein Utly In-A	AUIAX	A+	Open-End	1.40%
iShares S&P Glbl Energy Sect	IXC	A-	ETF	2.54%
Petroleum & Resources Corp	PEO	B	Closed-End	2.60%
Source: Bloomberg

The only two energy funds to fall between Jan. 18 and Jan. 25 were both closed-end funds with performance histories too short to generate ratings. The (IRR Quote)ING Risk Managed Natural Resources Fund fell 2.23%, and the (BCF Quote)Blackrock Real Asset Equity Trust slipped 0.77%.

While the holdings of ING Risk Managed Natural Resources aren't currently available, the fund is selling at a 3.46% discount to its net asset value, according to information on the company's Web site.

Blackrock Real Asset Equity Trust was hampered by the poor performances of Real Resources (RRSRF Quote), International Paper (IP Quote), Deere & Co (DE Quote) and Massey Energy (MEE Quote), which were chopped down by 12.22%, 4.32%, 2.99% and 2.21%, respectively.

The bullishness this week in energy funds serves as an example of how the prospect of increased focus on efficiency, energy conservation, cleaner electricity production and alternative energy sources can create economic growth by unleashing the opportunities for new companies to apply the latest high-tech energy solutions.