Pierre Andurand's largest hedge fund experienced a sharp decline of approximately 52% during the first two weeks of April, completely erasing the gains it had achieved in the first quarter from betting on rising oil prices at the onset of the Iran conflict.
According to an anonymous source familiar with the fund's performance, as of April 17, the fund had fallen significantly this month, with a year-to-date loss approaching 37%. The Andurand Commodities Discretionary Enhanced fund had delivered an impressive 31% return in March, a period when war-induced volatility in commodities and inflation expectations caught many hedge funds off guard.
The fund does not operate with a fixed risk limit and has historically experienced double-digit fluctuations. A spokesperson for Andurand's hedge fund declined to comment.
For Andurand, this setback once again highlights the extreme volatility inherent in commodity markets. The fund declined by approximately 40% last year, following a 50% gain the previous year. In 2023, it fell about 55%, after having risen around 59% the year before.
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