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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note