• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 hour Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 1 day Did China cherry-pick the factors that affected the economic slow-down?
  • 33 mins "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 9 mins "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 4 hours Are you aware of Oil Price short videos on our energy topics?
  • 9 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 12 hours NordStream2
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 4 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
  • 4 days Nord Stream - US/German consultations
Hedge Funds Cut Bullish Bets On Oil Amid Profit-Taking

Hedge Funds Cut Bullish Bets On Oil Amid Profit-Taking

Portfolio managers reduced their bullish…

5 Energy Stocks To Watch As Earnings Season Comes Up

5 Energy Stocks To Watch As Earnings Season Comes Up

As earnings season comes back…



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

This Hedge Fund Made A Killing On Oil Volatility In 2020

2018 was a very bad year for one-time commodity trading wunderkind, Pierre Andurand, who back in April of 2018 bet oil could soon hit $100 a barrel (and even said $300 oil is "not impossible"), but watched as his billion Andurand Commodities Fund suffered its largest monthly loss ever just a few months later as oil closed the year at just half of his target price. And while his performance in 2019 was better, the energy trader who runs one of the last big oil-focused hedge funds again failed to generate a positive return in a year when oil staged only a modest rebound.

Well what a difference a year makes: after being short in early 2020 when WTI did the unthinkable and on April 20 traded as low as a negative $40/bbl, Andurand redeemed himself following losses in the previous two years, and according to Bloomberg, his hedge fund stormed back in 2020 to post its biggest-ever gain.

The flagship Andurand Commodities Fund, which mostly bets on rises and falls in oil prices, was up 68.6% for the year, according to a Bloomberg source, while the Discretionary Enhanced Fund, which was launched in 2019 without pre-set risk limits, surged 154%. That made it not only the best performing commodity fund, but also one of the year’s best-performing hedge funds across all products and sectors.

As we reported at the time, most of the funds’ gains came in March (up 63.5%) and April when energy prices collapsed amid the covid lockdowns, and when Andurand was uncharacteristically - if 100% spot on correct - bearish on oil (we warned just weeks before the infamous price implosion that negative prices could be coming, and one month later that's precisely what happened) .

According to Bloomberg, Andurand’s returns were the best since his main fund made 38% in 2014. The solid 2020 performance is reminiscent of his strong gains during the last financial crisis at his previous firm BlueGold, which he co-founded with Dennis Crema in 2007 and launched the following year. He made more than 210% in 2008.

The solid performance could not come any sooner for the fund which has emerged as one of the very few commodity hedge funds still trading. Many of the biggest names have exited the market, including Astenbeck Capital Management, Blenheim Capital Management and Clive Capital, each of which managed billions of dollars at its peak, but which were forced to shutdown following major losses in recent years as oil cratered on several occasions in the past 6 years.

By Zerohedge.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News