Tuesday, 29 July 2014
Last updated 19 hours ago
May 13 2011 | 1:45pm ET
Last week was a very, very bad one for many commodity hedge funds—but not for all of them.
Commodity-focused funds managed by Brevan Howard Asset Management and Jamison Capital Partners actually posted sizeable gains during the oil rout last week that saddled firms including Astenbeck Capital Management, BlueGold Capital Management, Clive Capital and the Man Group, with big losses.
Jamison's $600 million Koppenberg Macro Commodity Fund rose 4% last week, Bloomberg News reports, while Brevan Howard's $368 million Commodities Strategies Master Fund rose 1.1% in a week that saw oil prices fall 13%.
"It seemed everybody was long," Nagi Kawkabani, co-CEO of Brevan Howard, explained. "It was just our view that the positioning, the almost universal bullishness and seeming inevitability of ever-rising commodity prices, was a little bit disturbing."
"The thing that stuck out to us was that volatility was relatively cheap, and it made sense to hedge given the moves in prices that had occurred," he continued.
Those factors didn't stick out to many others, with several of the managers who took a beating last week complaining that the sudden swoon made no sense.
One of those was Clive Capital, which told investors that "news for oil continued to be bullish." The firm lost 8.9% during the week.
Others did much worse: BlueGold lost 20%, Astenbeck 12% and Transtrend between 9% and 9.5%.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…