The oil trader known as ‘God’ is closing down his main hedge fund

How often finance industry christens someone as God only to see God being reduced to a mere human soon thereafter.

 

Story in Bloomberg. 

Andy Hall, the oil trader sometimes known in markets as “God,” is closing down his main hedge fund after big losses in the first half of the year, according to people with knowledge of the matter.

The capitulation of one of the best-known figures in the commodities industry comes after muted oil prices wrong-footed traders from Goldman Sachs Group Inc. to BP Plc’s in-house trading unit. Hall’s flagship Astenbeck Master Commodities Fund II lost almost 30 percent through June, a separate person with knowledge of the matter said, asking not to be identified because the details are private.

“I’m shocked,” said Danilo Onorino, a portfolio manager at Dogma Capital SA in Lugano, Switzerland. “This is the end of an era. He’s one of the top oil traders ever.”

Hall shot to fame during the global financial crisis when Citigroup Inc. revealed that, in a single year, he pocketed $100 million trading oil for the U.S. bank. His career stretches back to the 1970s and includes stints at BP and legendary trading house Phibro Energy Inc., where he was chief executive officer.

He bet for oil prices about to rise soon which never happened leading to decline in the fund.

Hall consistently pushed against the bearish tide on oil this year, using investor letters to cast doubt on data showing rising crude supplies and arguing that a sustained rally was on its way.

Then last month he changed tack, telling investors that the global crude market had “materially worsened” and that prices may be stuck around $50 a barrel or below. Brent crude fell 22 percent from the start of the year to a low in June, and though it has since rallied, it’s still only about $52.

The fund closure shows “how the world of forecasting the oil market changed after the shale revolution,” said Anas Alhajji, an independent analyst and former chief economist at private-equity group NGP Energy Capital Management LLC.

 

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One Response to “The oil trader known as ‘God’ is closing down his main hedge fund”

  1. The oil trader known as ‘God’ is closing down his main hedge fund - Daily Economic Buzz Says:

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