Andurand's oil fund tumbles 40% amid oil price falls - report
Quantum Commodity Intelligence – A fund operated by high-profile commodities trader Pierre Andurand has slumped around 40% this year following the oil prices drop and wider commodities retracement caused by this month's banking crisis.
His primary Andurand Commodities Discretionary Enhanced Fund has slumped about 40% this year, according to a Bloomberg report, citing sources with knowledge of the matter.
The report noted the highest level of losses came during in March, as the fund lost 23% this month as of last Friday.
Performances of individual funds are not made public, but fund managers are obliged to provide regular updates to investors, suggesting the Bloomberg sources are investors in the fund or those with information via primary sources.
May23 Brent futures slumped from around $87/b earlier in the month to a low of almost $70/b on Monday, the lowest front-month price since 2021.
Earlier this week, Andurand said that Brent could rise to $140/b by year end, indicating the hedge-fund boss remains highly bullish on the outlook for prices.
Andurand told delegates at the FT Commodities Global Summit in Switzerland that oil prices have been strained by the banking crisis, causing a liquidation of positions and a speculative selloff, but physical demand remains in a firm upwards trajectory.
Andurand's funds have generally enjoyed a good run since the post-Covid rebound in oil prices, with returns of 154% in 2020, 87% in 2021 and 59% in 2022, according to Bloomberg figures.
This week, fellow 2023 oil bull Goldman Sachs cut its 12-month Brent forecast by 6% to $94/b, noting the flood of investors exiting crude futures meant the price recovery towards $100/b would take longer than it previously expected.
