Tuesday, 1 December 2015
Last updated 16 hours ago
Dec 23 2011 | 10:10am ET
BlueGold Asset Management's obituary has been written before, only to prove premature. But the hedge fund is stumbling towards its first annual loss as investors worry about a change in the oil specialist's strategy.
London-based BlueGold is down 34% through mid-December, Reuters reports. Assets under management have fallen by some 40%, to US$1.2 billion from about US$2 billion.
BlueGold's losses this year have been steady; the firm was down about 25% through August.
But more worrying to some investors is not the firm's losses, but its portfolio. The firm's exposure to equities has risen to half of its assets, up from 5% at the beginning of the year. About 15% of BlueGold's exposure is to macro hedges, according to its latest risk portfolio.
"They are just not qualified to put on these kind of hedges," one investor told Reuters. "It's something that's worrying us. And from what we know, it's also worrying others who are invested with them."
Another source who works with that investor added, "We've no idea what specific trades they've been doing on equities or the macro side. We don't know the pluses and negatives of those trades, either. What we know is they've fallen deeper into the red and that's not comforting."
BlueGold founders Pierre Andurand and Dennis Crema made their name at Vitol trading oil.
"I always worry when any manager changes their stripes or tries to add a new strategy or even just a twist," another BlueGold investor told Reuters. "It doesn't mean they can't pull it off swimmingly, but more often than not, they don't."
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…