BlueGold Capital, one of the world??s largest commodity hedge funds, is liquidating its portfolio and returning money to investors.
In a letter sent out on Thursday, London-based BlueGold, run by former Vitol oil traders Pierre Andurand and Dennis Crema, said it was conducting an ??orderly closure?.
BlueGold saw the value of its portfolio drop 34 per cent last year, an investor said.
BlueGold??s assets swelled to reach a peak of $2.4bn a year ago, but have been in steady decline since on the back of poor performance and concerns among some investors over the funds?? investment strategy. The firm had moved to diversify beyond its core oil-trading specialism with its increase in size. It currently oversees assets of just over $1bn.
Like many other managers, BlueGold was wrong-footed by a major sell-off in the oil market last May, when its portfolio dropped 26 per cent in the first weeks of the month ?? a drawdown from which it was unable to recover.
In its letter, the fund manager said it expected to return 98 per cent of investors capital by May.
??The final distributions in respect of the fund??s remaining positions, adusted for any gains/loss on two existing equity positions, are anticipated to be paid by the end of the year, but we hope a lot earlier,? the letter said.
