Oct. 31 (Bloomberg) -- BlueGold Capital Management LLP, a hedge fund managing $970 million, advanced 28.7 percent in the first three weeks of this month after profiting from the slump in crude oil. Clive Capital LLP rose 17 percent.

BlueGold, based in London and run by Pierre Andurand and Dennis Crema, has risen 161 percent this year, according to two people with knowledge of the matter, asking not to be identified because the information is confidential. A company official who declined to be named confirmed the figures. This month's gains were through Oct. 24.

Clive Capital, founded by Chris Levett and managing $2.5 billion in commodities, rose 17 percent through Oct. 17, according to three people who saw the figures. Elizabeth Holstein, a spokeswoman for Clive Capital in London, declined to comment.

``The very best managers will always find an opportunity to make money,'' Tim Price, director of investments at London-based PFP Wealth Management, said today by phone. ``We're not in a normal time. The severity of asset deflation has been so brutal.''

The average hedge fund fell 20 percent in the year to the end of September, as measured by the HFRX Global Index. That's spurred some to dump assets to meet investor redemptions and others to hoard cash. Crude oil has slumped 56 percent since reaching a record $147.27 a barrel in New York in July.

Commodity investments held by professional money managers sank 22 percent to $211 billion in the third quarter, the first decline in value in five years, according to Barclays Capital. The S&P GSCI Index of 24 commodities has plunged 29 percent this month, the worst performance since at least 1970.

Ospraie Management LLC, the investment firm run by Dwight Anderson, last month said it would close its biggest hedge fund after it fell 38.6 percent this year because of losing wagers on commodity stocks.

To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net

Last Updated: October 30, 2008 20:01 EDT