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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note