Andurand Fund Is Said to Eke Out 2017 Gain Amid Late Oil Rally
Andurand Fund Is Said to Eke Out 2017 Gain Amid Late Oil Rally
(Bloomberg) -- Pierre Andurand, one of the most bullish oil hedge fund managers, gained 2.2 percent last year after a strong December performance allowed his eponymous fund to recover from months of losses, according to people familiar with the matter.
The oil-focused Andurand Capital Management LLP’s gain transpired as the price of global benchmark Brent crude ended the year up 18 percent, while its U.S. counterpart closed out 2017 with a 12 percent gain. Both Brent and West Texas Intermediate rallied just over 5 percent in December.
Andurand closed the year up as others in the industry struggled with oil swinging between the $40s and $60s last year and U.S. crude production skyrocketing to records. Andy Hall, the trader known as "God", shut his flagship Astenbeck Master Commodities Fund II Ltd. in August after it lost almost 30 percent of its value in the first half. Hall said algorithmic trading was making investing on market fundamentals "challenging" and he warned of a deteriorating outlook for crude. But Andurand said in November that oil prices will reach at least $80 a barrel in 2018 and supply will peak before demand.
Andurand was among top commodity hedge fund managers who met with Saudi Arabia’s Energy Minister Khalid Al-Falih in July to discuss the state of the oil market. The Organization of Petroleum Exporting Countries and its partners are embarking on this year’s promised continuation of supply curbs, which has helped boost Brent to almost $70 a barrel this month.
Andurand’s fund was down 4.5 percent as of the end of November, according to an investor document. A double-digit climb in December helped boost Andurand Capital into positive numbers for the year, according to the people who asked not to be identified because the information is confidential. The performance maintains the track record of positive returns for investors since its 2013 inception. The fund, with more than $1 billion in assets, had a 22.1 percent gain in 2016 and a 4.1 percent increase in 2015, according to people familiar.
To contact the reporters on this story: Saijel Kishan in New York at skishan@bloomberg.net, Javier Blas in London at jblas3@bloomberg.net, Jessica Summers in New York at jsummers24@bloomberg.net.
To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Tina Davis, Will Wade
©2018 Bloomberg L.P.