BlueGold Capital Management co-founder Pierre Andurand has founded a new commodities hedge fund firm and will launch its maiden fund next month.
London-based Andurand Capital Management is already up-and-running with a managed account and 14 employees, Andurand told Financial News. Like BlueGold, the new firm will focus on oil. But Andurand Capital will do several things differently from BlueGold, which closed last year after losing 34% in 2011.
For one, Andurand said, the new firm will not invest in equities and he will not share portfolio management duties as he did at BlueGold with co-founders Dennis Crema and Jean-Louis Le Mee. In addition, Andurand Capital will use less leverage and hold smaller positions, and, at least initially, will have greater turnover than BlueGold.
"In the current environment, we don't see trades that we can put on for two years," Andurand told FN. "Trades will typically be held for two to three months."
Andurand said that the new firm would focus its fundraising efforts on former BlueGold investors; those who stuck with BlueGold to the end will have their high-water marks transferred to the new fund.
BlueGold threw in the towel in April after suffering its first-ever losing year and seeing its assets dwindle by more than half. Founded in 2008, the hedge fund had previously posted annual returns of 209%, 55% and 13%. Andurand Capital's debut follows that of Le Mee's Abydos Capital Management in June.