Sunday, 29 March 2015
Last updated 1 day 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."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…