Tuesday, 30 September 2014
Last updated 5 hours ago
Feb 18 2014 | 12:35pm ET
The marriage of famed oil trader Andrew Hall to oil giant Occidental Petroleum could prove short-lived.
Hall's hedge fund, Astenbeck Capital Management, told investors on Friday that it was discussing a change in its relationship with Occidental, which bought Hall's Phibro proprietary trading desk from Citigroup in October 2009 and which owns 20% of Astenbeck. The letter came after Los Angeles-based Occidental announced it would spin off its California unit, move to Houston and cut back on its proprietary trading.
"Consistent with Occidental's strategic review to focus on core businesses, it also plans to reduce its exposure to proprietary trading activities related to crude oil and other commodities," the company said.
Occidental bought Phibro after the federal government pushed Citi to sell the unit. Hall's $100 million bonus raised eyebrows in Washington after Citi accepted nearly $50 billion in government bailout funds.
But Hall's run at Occidental has been conspicuously less successful than his time at Citi. Astenbeck has annualized returns of about 4% since the beginning of 2008, nearly two years before Phibro was acquired by Occidental. But the $3.5 billion firm has lost money in two of the last three years: It was down 3.8% in 2011, Hall's first annual loss in 11 years, and suffered its worst-ever year in 2013, falling 8.3%.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...