Clive Up 7% As Oil, Energy Price Fall

May 25 2012 | 10:40am ET

Clive Capital's pessimism has paid off in a big way for the commodity hedge fund this month.

London-based Clive is up about 7% in the first three weeks of May, thanks to a precipitous drop in oil prices. Brent crude oil prices are down 11% this month, their worst in two years.

Clive's bets against European coal, natural gas and energy futures also paid off.

"Given our softer economic outlook, we are very happy to continue our negative-bias energy positions in oil, coal and European gas and power," Clive wrote to clients. And not just to extend, but to increase, as the firm did with bets against oil. On the other hand, Clive ended its bet against U.S. natural gas.

Clive said that the world's oil supply is "good" and that demand is "weak."

The May surge was more than good enough to cover the US$3.3 billion hedge fund's losses through April, which totaled 4.8% for its Class B shares.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR