Oil Rebound Hammers Volatility Trader Blueshift

Mar 20 2015 | 10:31am ET

Oil’s rebound last month apparently left energy volatility trader Blueshift Capital out in the cold.

The fund dropped 8.4% in February, according to media reports, the largest monthly loss since the hedge fund’s inception. The fund concentrates on long-short energy volatility as well as volatility in other commodity markets. 

The swings in energy prices have been alternatively profitable and troublesome for hedge funds since fall of 2014, when oil’s decline began to accelerate. Traders have needed to adjust quickly to changing volatility, with some catching moves correctly and others being caught on the wrong side of a trade or out of the market entirely. 

New York-based Blueshift manages approximately $170 million in assets, according to the reports. Principals of the fund include Todd Kramer and Tina Lindstrom, who were volatility traders at Citigroup and Susquehanna International Group, respectively. 

The loss brings year-to-date performance of the fund to -6.5% through the end of February, compared to a 9% gain in 2014 and nearly 15% in 2013.

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