Hall's Astenbeck Closing Main Hedge Fund As Bullish Oil Outlook Wanes Aug 3 2017 | 5:03pm ET Following a dramatic shift in his long-held bullish bias on oil, famed commodities trader Andrew Hall is shuttering the main hedge fund at $2.4 billion Astenbeck Capital Management after large losses during 2017’s first half. Hall’s flagship Master Commodities Fund II reportedly lost nearly 30% in the first six months of the year, according to a Bloomberg article citing unidentified individuals familiar with the results. The decision to close the fund comes after Hall, a long-time oil bull, changed tack in July and said in a July investor letter that the global crude oil market had “materially changed,” partly through OPEC’s loss of pricing power, and that $50/barrel oil has become the “new normal” and positions that used to be held with an eye towards longer-term appreciation were no longer viable. Previously, Hall had maintained a resolutely bullish stance on oil, calling for a sustained rally based on tighter supplies and decrying “fake news” that was exacerbating downside moves in the commodity’s price. Nonetheless, oil prices have been mired in a prolonged, low-volatility rut as demand from a gradually expanding economy is more than offset by increased production from new sources such as U.S. shale companies and waning influence of OPEC on its members’ production levels. Hall founded Southport, CT-based Astenbeck in 2008 after a highly successful stint as an oil trader for Citigroup’s Phibro division during which he famously earned a $100 million bonus that indirectly led to the unit’s sale a year later. from FINALTERNATIVES
Does someone has this fund performance metrics? It must have been a terrible vehicle to invest in. Nothing but negative articles in the last few years.
From what I can see, performance hasn't been great. Most importantly, it's been very volatile. For instance, I see some headlines that suggest that they lost 17% in July 2015. Looks like, overall, they were down arnd 20% in 2015, up 26% in 2016 and now down 30% for the first half of 2017. Looks like his whole fund is an occasionally less, but sometimes more, leveraged long bet on crude.
"The title of this 1955 book refers to a story about a visitor to New York who admired the yachts of the bankers and brokers. Naively, he asked where all the customers' yachts were? Of course, none of the customers could afford yachts, even though they dutifully followed the advice of their bankers and brokers. Full of wise contrarian advice and offering a true look at the world of investing, Where are the customers' yachts continues to open the eyes of investors to the reality of Wall Street. Here, Leo Gough’s interpretation of Where are the customer’s yachts illustrates the timeless nature of Fred Schwed’s insights by bringing them to life through 52 modern case studies. This brilliant interpretation is an entertaining accompaniment to one of the most famous books on investment ever written." astenbeck still owns his castle. nothing has changed in 62 years.
Fundamental analysis, on its own, stinks... Just goes to show that the more you think you know (my contacts, my network, my info blah blah blah), the more you don't