BlueGold, Merchant Commodities Pummeled In August

Sep 9 2011 | 1:41pm ET

August's hedge fund rout did not spare some of the biggest commodity specialists.

BlueGold Capital Management's flagship plummeted 12% last month, nearly doubling its year-to-date loss. The US$2.3 billion fund is now down 25% on the year, Bloomberg News reports.

Things are even worse for Aisling Analytics' Merchant Commodity Fund, which is down 32% in 2011 after shedding 3.9% last month. The US$1.1 billion fund launched last year.

Clive Capital does not find itself in quite such dire straights. Still, its eponymous US$4.8 billion flagship is down 11% this year. It lost 0.2% last month.

Not all commodity hedge funds are in such a jam. Duet Group's US$100 million Commodity Fund is up 33% this year, adding 1.65% in August. Krom River Trading's Commodity Fund, which manages US$820 million rose 1.9% last month. And Fortress Investment Group's Commodities Offshore fund posted a big August to drag it out of the red for the year.

Fortress Commodities jumped 6% last month. It is now up 1.8% year-to-date.

Despite the strong August, fund manager William Callanan said he remains worried.

"We are quite concerned about the economic contraction that may unfold, and as a result, we intend to be an active seller of rallies in base metals and energy,” Callanan wrote to investors. “Our core belief in the potential for the gold market is steadfast and this will remain in the foreseeable future.”


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

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

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of