BlueGold Calls It Quits

Apr 9 2012 | 10:22am ET

BlueGold Capital Management is to liquidate and return money to investors, after losing more than one-third of its value last year.

The London-based oil specialist told clients on Thursday that it would return almost all of their money this month as part of an “orderly closure,” after calculating its net asset value. It will return the rest later this year.

BlueGold co-founders Pierre Andurand and Dennis Crema did not explain why they were closing their four-year-old hedge fund. But after an astonishing start—it returned 209% in 2008, 55% in 2009 and 13% in 2010, the last after having to deny liquidation rumors after losing 14% in February—the fund has hit hard times, losing 34% last year and about 2% through February of this year. Assets under management have fallen from US$2.2 billion to US$1 billion.

That decline is only in part due to poor performance. Investors have been spooked by the formerly commodities-heavy firm’s increasing investments in stocks, which rose to half of its portfolio last year.

Andurand and Crema worked together at Vitol before launching BlueGold. One of their co-founding partners, Jean-Louis Le Mee, is set to launch a commodity hedge fund in June, Abydos Capital Management.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...