Investors are set to flee T. Boone Pickens’ energy hedge fund in droves.
The famed Texas oilman’s BP Capital, battered by energy market volatility, has lost about 60% of its value this year. And now about half of its investors have asked to withdraw their money, Reuters reports.
BP Capital has lost about $2 billion since late June. Pickens has reportedly waived withdrawal requirements, and has moved almost all of the fund’s assets into cash in preparation for the avalanche of redemptions, as well as to ride out the market volatility.
The losses are new territory for BP Capital, which has enjoyed only positive returns since its debut seven years ago. Pickens, who has made headlines in recent months more as an advocate for alternative energy and as an Oklahoma State University sports booster, has vowed to make a comeback.