$5 billion commodity hedge fund Clive Capital didn’t have a stellar week.
The London-based fund run by former Moore Capital portfolio manager Chris Levett, lost over $400 million last week after oil nosedived, and now the fund is now down for the year.
But usually, Levett’s outlook is on the mark, and at Moore, he was a star.
The commodities fund he oversaw “returned 39%, 47% and 31% in 2004, 2005 and 2006, respectively,” according to FinAlternatives. According to a letter to investors obtained by Clusterstock, Clive was up 10% through October 2010.
He joined Moore in 2004.
According to Institutional Investor,
Nearly half of his gains last year took place in October, perhaps the most volatile month in 2008 for the global markets in general. Early in the year he made money betting that energy and metals prices would rise; later he profited by betting that they would fall.
“In its first full year of business, London-based Clive Capital soared 44 per cent, after fees, trading everything from energy and metals to grains and vegetable oils,” Investor reported.
He shuttered the fund to new investors in 2009, in order “to maintain its ability to trade in many low volume commodities markets.” He was keen to keep “a lean asset-base in order to nimbly manoeuvre such markets.”
The firm has recorded returns of about 27% since Levett launched it in 2007.
Levett began his trading career at London brokerage Union CAL. He then humped to AIG Trading as an energy trader, where he was subsequently tapped to manage the firm’s oil trading unit. “He was also responsible for the global customer book in forward crude oil derivatives.”
Despite injuries to the portfolio, Levett’s firm believe that the “physical markets are quite strong… [So] we remain positioned in a number of markets.