Photographer: Luke Sharrett/Bloomberg

Andurand's Oil Hedge Fund Said to Slide 17 Percent Through May

  • Noted hedge fund liquidated final bullish positions in April
  • Brent crude prices fell sharply in late May after OPEC meeting

Pierre Andurand’s oil hedge fund lost 17.3 percent in the year through May as one of the world’s most prominent energy bulls suffered in the wake of last month’s OPEC meeting, according to a document outlining the fund’s performance.

Pierre Andurand

Photographer: Anthony Harvey/Getty Images for The New York Times

London-based Andurand Capital Management LLP deepened its annual losses despite having sold its last bullish -- or long -- positions at the end of April, when the fund was already down 15.4 percent.

Andurand, who’s made a name by calling past rises and falls in the market, had been reducing his bullish positions over the course of 2017. Despite the liquidation, the oil trader remains optimistic about fundamentals of the market.

Oil prices fell sharply in late May after OPEC and several non-OPEC countries agreed to extend their production cuts by nine months until the end of March 2018, disappointing investors who hoped for deeper as well as longer output curbs. From May 25 to June 1, the price of Brent crude fell $3.65 a barrel -- a drop of almost 7 percent.

The oil investor, whose fund gained 22 percent last year net of fees, manages about $1.3 billion, making it one of the largest commodities-focused hedge funds. Its peers include Astenbeck Capital Management, with $2.65 billion in assets, Cumulus Fund, with $1.9 billion, and Blenheim Capital Management LLC with $1.5 billion.

A spokesman for Andurand Capital Management LLP declined to comment.

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