Lockdown bonanza, as the world’s largest oil trader Pierre Andurand bags triple-digit gains from the extraordinary and unprecedented event of US crude turning negative in April 2020.
Pierre Andurand, who manages the world’s largest oil fund Andurand the Commodities Fund has not always been in the money the oil trader has had his fair share of ebbs and flows.
“Oil trader Pierre Andurand bags triple-digit gains from the extraordinary and unprecedented event of US crude turning negative in April 2020”
WEALTH TRAINING COMPANY
Back in November 2018, we noted in a piece entitled, “Pierre Andurand suffered heavy losses”.
Pierre Andurand made a grand bet that oil prices would reach 100 USD, he even predicted that 300 USD a barrel was a possibility.
But the market proved Pierre Andurand wrong, and he ended up holding the losing side of the trade. To cut a long story short Pierre Andurand’s $1bn Andurand Commodities Fund hemorrhaging 20.9% in that month alone, leaving the fund in the red by 12% for the year.
In a bizarre world where fortunes are made and lost, sometimes literally overnight, two years is eons, so in 2020 Pierre Andurand bags triple-digit gains betting that US crude prices would fall in the first half of 2020
It was a bet that you could have ridden to the bank from oil jumping to $70/bbl in early January on news of US assassination of an Iran general to only then collapse as low as a negative $40/bbl over the pandemic great lockdowns demand shock.
“Oil collapsed as low as a negative $40/bbl over the pandemic great lockdowns demand shock”
WEALTH TRAINING COMPANY
Andurand Commodities Fund, which mostly bets on rises and falls in oil prices, was up 68.6% for the year, according to a Bloomberg source, while the Discretionary Enhanced Fund, which was launched in 2019, without pre-set risk limits, surged 154%
So, Pierre Andurand bags triple-digit gains making his Discretionary Enhanced Fund the best performing commodity fund. It was also one of the year’s best-performing hedge funds across all products and sectors.
As already explained above, most of the funds’ profits were made from Pierre Andurand betting that crude prices would fall in early 2020, which they did do. So crude oil’s infamous price implosions in March pushed Pierre Andurand’s bearish crude oil wages into the green. In profit terms, Pierre Andurand funds were up 63.5% in March, and by April, as crude collapsed into negative prices his Discretionary Enhanced Fund notched triple-digit alpha profits, as noted above.
“Most of Pierre Andurand’s rival commodity funds have shut up shop, unable to recuperate large losses over the years as oil prices continued their decline” – Wealth Training Company
So, Pierre Andurand bags triple-digit gains, which justifies his funds’ existence
Most of Pierre Andurand’s rival commodity funds have shut up shop, unable to recuperate large losses over the years as oil prices continued their decline. Since 2015 three major commodity funds, Astenbeck Capital Management, Blenheim Capital Management, and Clive Capital, all of which managed billions of dollars at their peak, have shut up shop.
But the sixty-four-million-dollar question as crude oil hovers around $50/bbl, at the time of writing this piece, is how is Pierre Andurand, playing crude oil in 2021?