Commodities Hedge Funds
Commodities Sell Off Causes Major Losses Among Hedge Funds
Funds like Mike Coleman's Merchant Commodity fund and Willem Kooyker's Blenheim Capital sit on hefty double-digit losses for the year after investors worried about global economic growth recently dumped gold, copper and cocoa for less-risky assets.
And Astenbeck, the $2 billion hedge fund founded by famed oil bull Andy Hall, lost around 18 percent of its value in September -- far more than last month's 11 percent drop in Brent crude, the London benchmark used now by most oil investors and traders.
The Reuters-Jefferies CRB index of 19 commodities .CRB shed 13 percent during September, a drop which has echoes of May when many star managers betting on rising prices were caught on the hop by a quick sell-off.
The size of the September hit, on top of losses suffered earlier this year, means many managers who enjoyed bumper profits from the long commodity bull run now face the likelihood of a down year. Source