How bad is the oil bust? Even the big believers in an inevitable rebound are hedging their bets. But wary of the sharp price declines that stung early bargain hunters, they are approaching their investments more cautiously. Some funds are focusing on senior, secured loans—those that are first in line to get paid back if energy companies run into problems handling their debt . Others are buying hedges against further declines in oil or natural-gas prices. Those steps will mean lower gains than if they took riskier positions. But they also could guard against the risk of being too early in a market that, while battered, continues to post steep declines. Last month, David Rubenstein, a founder of private-equity firm Carlyle Group , CG -1.13 % said he anticipates “maybe the greatest energy investing opportunities we’ve ever seen.” Marc Lasry, founder of hedge fund Avenue Capital, has described energy […]