Andurand Hedge Fund Soars 154 Percent in 2020

(Bloomberg) -- Pierre Andurand’s oil hedge funds stormed back in 2020 to post their biggest-ever gains as the global pandemic roiled energy markets.

His main Andurand Commodities Fund, which mostly bets on rises and falls in oil prices, was up 68.6% for the year, according to a person with knowledge of the matter. The Discretionary Enhanced Fund, a vehicle he started in 2019 that has no set risk limits, surged 154%, said the person, who asked not to be identified because the information is private. That made it one of the year’s best-performing hedge funds.

Most of the funds’ gains came in March and April when the first coronavirus wave shut economies, leading to a collapse in energy prices. Both the U.S. and global crude benchmarks lost more than a fifth of their value last year.

The returns, the best since Andurand’s main fund made 38% in 2014, mark a turnaround for the oil trader who is known for his bullish wagers. His fund suffered back-to-back losses in 2018 and 2019 of 20% and 7.1%, respectively.

A spokesman for Andurand Capital Management, which has offices in London and Malta, declined to comment.

Andurand is one of the few commodity hedge fund specialists who’s still trading. Many of the biggest names have exited the market, including Astenbeck Capital Management, Blenheim Capital Management and Clive Capital, each of which managed billions of dollars at its peak.

While Andurand hasn’t disclosed the funds’ latest assets, they manage roughly equal amounts of capital, the person said. The firm had about $840 million in assets under management at the end of 2018.

Andurand’s 2020 performance is reminiscent of his strong gains during the last financial crisis at his previous firm BlueGold, which he co-founded with Dennis Crema in 2007 and launched the following year. He made more than 210% in 2008.

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