Jamison, Brevan Howard Commodities Funds Rally As Peers Plummet

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%.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat