NEW YORK, Jan. 15 /PRNewswire/ -- S-Network Global Indexes LLC announced today the launch of a new index that tracks the performance of small- and mid-cap energy stocks: The Thomson Reuters/Jefferies CRB Wildcatters Energy E&P Equity Index (Ticker: WCATI). Live calculation of the index began on December 7, 2009.
Said Joseph LaCorte, President of S-Network, "Wildcatters is the first index that tracks the performance of small- and mid-cap energy exploration and production stocks." The capitalization-weighted index contains 55 stocks based in the US and Canada, ranging in size from USD 200 million to USD 2.5 billion in market capitalization. The index is rules-based.
A quarterly performance report of WCATI is available here:
For further information about WCATI, including rules and an index presentation, visit: www.crbequityindexes.com.
Small-cap and mid-cap exploration and production stocks play a prominent role in meeting North American energy needs, especially in the natural gas sector. The proved reserves of the index are weighted by over two-thirds in favor of natural gas. With over 1,500 trillion cubic feet of unproved domestic natural gas reserves, plus new technologies that allow exploitation of previously inaccessible shale and coal bed methane reserves, index constituents are believed to have ample opportunity to grow reserves. Said Richard Phillips, Senior Index Analyst at S-Network, "The term 'wildcatters' harks back to the halcyon days of independent oil exploration in America. We now may be entering a new era of opportunity for domestic natural gas exploration."
Based on back tests, the Wildcatters Index tends to be more volatile than other energy indexes. In 2009, Wildcatters posted a 76% gain, substantially outperforming all other widely recognized energy indexes. Over the past five years, however, the index has at times underperformed other indexes. Said LaCorte, "Wildcatters has a beta of between 1.2 and 1.6 compared to other energy and stock market indexes. As a result, it tended to outperform when the energy sector was on the upswing and to underperform when the energy outlook was bearish."
S-Network Global Indexes, LLC is the index provider for the WCATI. Jefferies and Thomson Reuters are brand licensors, and Thomson Reuters services as the calculation agent.
WCATI has been licensed to serve as the underlying for a US ETF.
About S-Network Global Indexes LLC
S-Network Global Indexes LLC is a publisher and developer of proprietary and custom indexes. S-Network, founded in 1997, has specialized in indexes, indexation and index-based products, including ETFs. More about S-Network can be found at www.snetglobalindexes.com.
Jefferies, a major global securities and investment banking firm, has served companies and their investors for more than 45 years. Jefferies & Company, Inc. is the principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF)( www.jefferies.com).
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare and science and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people and operates in over 100 countries. Thomson Reuters shares are listed on the Toronto Stock Exchange and New York Stock Exchange. For more information, go to www.thomsonreuters.com.
Joseph LaCorte, CFA
S-Network Global Indexes LLC
267 Fifth Avenue
New York, NY 10016
Phone: (646) 467-7927
SOURCE S-Network Global Indexes LLC