BlueGold, Clive Not Fueled By Oil Jump

Mar 16 2012 | 8:01am ET

BlueGold Capital Management and Clive Capital appear to be skeptical about the early-year rally in oil prices—to their detriment, so far.

While oil is up 6% in the U.S. and 15% in London, where BlueGold and Clive are based, and while the average energy hedge fund is up about 8% through the first two months of the year, the two well-known oil-trading hedge funds have fizzled. Clive is up only 3% on the year, and BlueGold is down about 2%.

"They haven't exactly told their investors or anyone for that matter that they don't believe the way this market has been going," one source, who receives performance updates from the two hedge funds, told Reuters. "But their lack of bullish exposure indicates that they are ready to pounce the other way the moment prices turn, if they're not already shorting the market, that is."

Clive returned 4% in February after losing 1% in January. The firm manages about US$4 billion. BlueGold, for its part, lost 1.5% in January and 0.5% in February. It has more than US$1 billion in assets.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...