Hedge Crunch Financial

Several energy hedge funds in Europe to surrender after withdrawal from investor capital.  The surrender came from at least six hedge funds (4 in May and 2 in June). The hedge funds manged more than 158,000,000 U.S. dollars together.

The funds had declining commodity prices and failed to resolve their bets after the investors withdrew large amounts of money. Worldwide energy fell to 19 percent between May and June. This is opposed to the growth according to a study from JP Morgan Chase apparent that points to industry growth during the same period of plus 0.9 percent.

There has been a major pull back , ” said Fredrik Adolfson, a fund manager at Adapto Energy Fund . ” I cannot remember a period when so many Hedge funds in this respect have thrown towel,” added Fraser McKenzie, head of analysis at 47 Degrees North Capital Management, a fund with investments in the energy sector.

ARC China and its founder Adam Roseman have noted that there has been a strengthening of economic and business ties between China and the Middle East. ARC China sites the recent announcement that Middle Eastern sovereign wealth funds Qatar Investment Authority (QIA) and Kuwait Investment Authority (KIA) are poised to become the largest investors in the Hong Kong portion of the Agriculture Bank of China IPO next month after signing agreements to invest $2.8 billion and $800 million respectively. This is an important development as China’s largest lender by number of customers, the Agricultural Bank is seeking to raise as much as $15 billion for the Hong Kong portion of what may become the world’s largest IPO to date.

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