Astenbeck Suffers Worst-Ever Year

Feb 7 2014 | 2:24pm ET

There was no second great escape for Andrew Hall's Astenbeck Capital Management last year—only a second losing year in three.

The $3.5 billion oil hedge fund dropped 8.3% last year. It is only Astenbeck's second annual loss since its debut in 2007, after Hall left Citigroup and set the firm up with Occidental Petroleum Corp., and its largest-ever.

Astenbeck lost 3.8% in 2011, Hall's first annual loss in 14 years. The firm looked likely to be in the red again last year, but managed to rally in 2012's final months to return 3.4%.

Astenbeck's 2013 losses extended into the new year, with the fund falling 2.1% last month, according to Bloomberg News.

Of course, Astenbeck was not alone among commodity hedge funds suffering in 2013. Volatility in the sector is low, and oil volatility especially so, hitting a 17-year low last year. Several high-profile commodity shops closed their doors in 2013.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.