Meet the Energy Hedge Funds That Made Money While Oil Plunged

BLOOMBERG – The plunge in oil prices has dragged down much of the energy sector with it. Yet, some energy-focused hedge funds managed to avoid the carnage entirely. Lansdowne Partners — one of Europe’s largest hedge funds with $22 billion — gained 14.8 percent last year in its long-short energy-focused equity fund, according to a person familiar with the matter. Some commodity trading advisers, or CTAs, posted gains of more than 25 percent in 2015. Breaking even was an achievement last year, when the price of a barrel of oil dropped 30 percent and the Standard & Poor’s 500 Energy Sector Index lost 21 percent. Energy-focused equity funds fell 10.7 percent last year, according to eVestment’s latest hedge fund performance report. Oil has fallen about another 21 percent in 2016, trading below $30 for the first time since 2003. Landsdowne bucked the trend with a majority of its gains from short positions, the person familiar with the matter said. Other key drivers at the $140 million fund, managed by Per Lekander, were long and short bets on utilities, energy infrastructure and renewables, the person said. Lansdowne spokesman Matthew Goodman declined to comment. Brenham Capital Management, a Dallas, Texas-based long-short equity hedge fund run

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Source: CTRM Center

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