Energy Hedge Fund Runs Out Of Gas 08/04/06 Institutional Investor Daily-Hedge Funds MotherRock, one of the largest hedge funds in New York to trade in natural gas, is unplugging from the industry. According to Crainâs New York Business, the HF, which had $430 million in assets under management after just a year or so in business, was battered in June and July by losses in the highly volatile natural gas market. In the past week, natural gas futures spiked more than 30%. In a letter to investors of the MotherRock Energy Master Fund obtained by Bloomberg News and Dow Jones Newswires, founder Robert âBoâ Collins, a former president of the New York Mercantile Exchange, expressed regrets for the âterrible performance and its impact onâ their investments. Just how terrible? Bloomberg reports MotherRock lost 23% in the first half of 2006, with July producing âsignificant losses,â according to Collins. While the HFâs management has recommended the shutdown, itâs not a done deal; the board of directors has yet to vote on it. Last year, MotherRock did in fact rock, with net gains of 20% on its investments, reports Crainâs. Meanwhile, the New York Mercantile Exchange has issued a statement that MotherRockâs closure poses no threat to any âclearing members or other customers.â