Hedge Fund Liquidation Rumors As Oil Plummets

Feb 21 2013 | 4:32pm ET

Rumors of a hedge fund collapse helped send oil yesterday to its worst day of the year so far.

The price of crude oil dropped more than $2 per barrel late yesterday morning amidst word that a troubled hedge fund was liquidating big commodity positions. The sharp decline appeared to be the result of multiple sell-stop orders triggered in rapid succession.

Oil prices had been up $10 per barrel during the first six weeks of the year.

"We hadn't seen a move like that in quite some time, so the move seemed pretty legit" MMC Trading's Matthew Cacciotti told Forbes. "10,000 lots traded in a minute, then some moments later we saw another 6,000 lots, that feels like a liquidation."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...