By Nell Mackenzie
LONDON (Reuters) – Hedge fund manager Pierre Andurand’s Commodities Discretionary Enhanced Fund ended March down 15% and 34% lower for the year so far, eliminating over half of the fund’s 2022 gains, said a client note from Societe Generale seen by Reuters.
March saw a wild ride in commodities prices with crude oil futures slumping 18% in markets roiled by the banking crisis. Prices reversed on March 20 and rebounded another 18% but front-month oil ended March at $75.67, down around $2 on the month.
Andurand Capital Management, which manages around $1.4 billion, trades commodity strategies with a focus on oil and the energy complex. The fund uses supply and demand, and macroeconomic factors to determine buy and sell signals in the energy and commodities markets, its website says.
Andurand, its founder and chief investment officer, said in March he was optimistic that oil prices would recover, expecting them to hit $140 a barrel by year-end.
Brent crude futures are trading at around $75 a barrel.
While money managers started March with mostly long positions, recently, hedge funds and other money managers have sold the equivalent of 87 million barrels in the six most important petroleum futures and options contracts over the seven days ending on April 25, according to latest CFTC data.
The selling was the first since the U.S. regional banking crisis erupted in March and came after funds had purchased a total of 245 million barrels over the previous four weeks.
Andurand Capital Management declined to comment.
(Reporting by Nell Mackenzie; Editing by Bernadette Baum)
