European Energy Hedge Funds in Retreat
Thursday, July 15th, 2010Several 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.
