Largest Oil-Focused Hedge Fund Suffers Worst Loss Ever, Denies NatGas Liquidation

After ‘oil god’ Andy Hall shut down his main fund in 2017, Pierre Andurand has taken on the mantra of the world’s largest oil trader. But the last few years have been tempestuous to say the least.

After facing huge losses in Q1 last year, Andurand blamed his losses on the irrational actions of CTAs and trend-followers. Well its Q3 2018, and as The Wall Street Journal reports, Andurand, who runs one of the last big oil-focused hedge funds, took significant losses in October as petroleum prices cratered.

Pierre Andurand, who earlier in 2018 predicted oil could soon hit $100 a barrel, suffered the largest-ever monthly loss of his flagship fund in October. The $1 billion Andurand Commodities Fund lost 20.9% last month, taking the fund down more than 12% for the year, according to numbers sent to investors and reviewed by The Wall Street Journal.

The last few weeks have seen not only crude collapse but NatGas explode higher and lots of chatter of a ‘behemoth’ fund liquidating (buying back Nattie shorts and selling back WTI longs)…

Andurand confirms it was not his fund…

“It was nothing to do with us,” Mr. Andurand told The Wall Street Journal on Wednesday.

“I do not think the move is related to large funds in trouble.”

In addition to forecasting $100 oil in 2018, he also said that prices could hit as high as $300 a barrel in a few years, although that wasn’t his forecast.

Mr. Andurand’s new fund, the Andurand Commodities Fund, has gained every year since its 2013 inception, helped by bullish bets, including buying one day after oil hit a 13-year low in 2016. That year, the fund gained 22.1%. The fund is still up around 100% since its start.

So it appears his strategy is “buy oil”…

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