BlueGold Pummeled By Oil Rout, Down 20% Last Week

May 11 2011 | 1:11pm ET

BlueGold Capital Management lost 20% about last week as oil prices hit the skids.

The London-based commodities specialist is not the only hedge fund to take a beating last week: Astenbeck Capital Management, Clive Capital, Transtrend and the Man Group's AHL strategy were among the funds suffering significant drops at the end of last week, when oil prices fell about 13%. But it may be the hardest-hit, losing some US$500 million of the US$2.4 billion it managed, The Wall Street Journal reports. The losses wiped out the 17% gain that Blue Gold had managed through April.

For BlueGold, there must be a sickening feeling of déjà vu: The firm was forced to deny liquidation rumors last February after it dropped 11% in the year's first few weeks. The fund remained in the red until December, when it soared 23% to ensure a 13% return for the year.

BlueGold also suffered a 19% drop in late 2008, which didn't stop it from finishing its first year in business up 209%.

BlueGold founder Pierre Andurand remains bullish on oil, the Journal reports. He blamed the losses on nervous investors who had recently jumped into the oil markets.

Many of his fellow oil traders appeared mystified by the unusually steep drop in oil prices, suggesting it could not have been predicted. But, according to the Journal, one hedge fund did.

Taylor Woods, the Blackstone Group-backed hedge fund launched in February by former Credit Suisse proprietary commodities traders George Taylor and Trevor Woods, apparently sensed something early last week, before Thursday's rout, because it exited its oil trades. The move saved the $470 million fund a bundle; it lost only 0.1% last week and remains up 2.5% on the year.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.