Saturday, 23 August 2014
Last updated 21 hours ago
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.”
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note