Blueshift Capital Caught Out on Oil Market Volatility
Main fund dropped 8% as oil markets rebounded
The New York-based firm, which trades volatility in energy markets and other commodities and runs about $170 million in assets, saw its fund drop 8.4%, according to numbers compiled by a hedge fund investor and reviewed by the Wall Street Journal. A spokesman for Blueshift declined to comment. The hedge fund investor said that the fund is likely to be doing better this month, along with other commodity hedge funds that suffered in February.
A fairly steady decline in the price of Brent crude from more than $100 a barrel in September to below $50 in January has provided a good money-making opportunity for hedge funds, but last month saw a sharp rebound of around 18%. That caught out some managers, say investors, with commodity funds on average losing 0.6% last month, according to Hedge Fund Research.
A series of sudden price swings in markets across asset classes has proved tricky for some hedge funds to navigate in recent weeks. Big moves have been seen in currency, commodity, equity and bond markets as traders seek to understand the eventual impact of central bank action on markets.
Blueshift’s loss leaves the fund down 6.5% for the first two months of the year, after having gained more than 9% last year and almost 15% in 2013, when the fund began trading.