Phibro Chief Founds Hedge Fund

Feb 16 2010 | 3:53am ET

Former Citigroup star energy trader Andrew Hall and his new partners are going into the hedge fund business.

Hall and Occidental Petroleum, which bought the lucrative Phibro oil-and-gas trading unit last year, have set up Astenbeck Capital Management. The new firm will manage outside money—it already boasts $1.4 billion in assets under management—while Phibro will manage Occidental’s money exclusively, the Financial Times reports.

Phibro, based in Westport, Conn., has had outside investors since 2007, and launched a fundraising effort last year as Citi was selling the group to Occidental for $250 million. Astenbeck has replaced Phibro as the manager of that money.

Hall owns 80% of the new firm, and Occidental owns the rest. According to the FT, interested investors should be ready to pony up a fair amount if they want Hall to manage their money: Astenbeck features a $25 million minimum investment requirement.

Schloss DerneburgSchloss DerneburgAmong the assets Astenbeck is managing are pooled commodities funds with more than $700 million, set up two years ago.

Astenbeck is named for a village near Hall’s sprawling castle, Schloss Derneburg, outside of Hannover, Germany. The firm’s commodity fund dropped about 6% last month, although the firm has never posted an annual loss and earned some $2 billion for Citi over the past five years.

Citi sold Phibro to Occidental in October. The Wall Street giant, which took billions in government bailout money, had been under pressure to offload the unit because Hall was due a $100 million bonus under his contract.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.