A hedge fund managed by Pierre Andurand took a stunning loss in the first six months of 2023, with its flagship fund down 51% amid this year's drop in energy prices.
The Andurand Commodities Discretionary Enhanced Fund makes leveraged bets in the energy space and fell 7% in the first three weeks of June, according to an investor letterThe hedge fund has likely lost about $750 million so far this year, based on reports that it manged about $1.5 billion in December 2022.
While it's unclear as to what trades drove the big losses, it likely was related to bullish oil bets as Andurand had given a forecast earlier this year that oil prices would soar to $140 per barrel by the end of 2023. "I think oil will go upwards of $140 a barrel once Asia fully reopens, assuming there will be no more lockdowns,", adding that the"market is underestimating the scale of the demand boost that it will bring."
Instead, oil prices have steadily dropped by about 12% this year, with WTI Crude Oil trading at just under $71 a barrel on Friday. The commodity price has been driven by cheap