Some Indebted Drillers Seen as Opportunities for Fund Managers

From CNBC:
Last year, Toronto-based Sprott Asset Management's energy fund sometimes had only 30 percent of its cash invested, as oil and gas stocks fell fast and furious. 
That's changed. 
Heading into this year, the fund was effectively fully invested, portfolio manager Eric Nuttall said. 
"I really do think the risk has swung from being invested in energy stocks to not being invested in energy stocks," he told CNBC's "Squawk on the Street" just before the new year. 
To be sure, the oil exploration and production sector, facing high levels of debt and falling revenue, is a risky one. But many financial professionals are buying energy companies — if those outfits have relatively strong balance sheets. With stocks trading at huge discounts from their peaks, and oil prices expected to rebound at some point this year, some investors and money managers are beginning to take a second look at companies with high debt.
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