The One Commodity Hedge Fund That's Killing It Right Now

David Coolidge of Velite Capital, a Houston-based commodity fund with about $1 billion under management, is outperforming almost the entire hedge fund industry right now.

In August, Velite was up 20%, according to an e-mail sent to investors that was obtained by Bloomberg.

That means he outperformed other commodity funds, which are down on average of -1.5% this year and the entire hedge fund industry, which returned on average .4% on average in August, by a mile.

The fund wouldn’t answer any questions when Bloomberg called, and this fund has been under the radar until now, so we know barely anything about Coolidge or his strategy, other than the fund specialises in oil and energy trading and the guess out there is that he was pretty short 2011 natural gas (check out the graph that shows why that trade might have worked).

But this might be a lead. The one Houston-based David Coolidge on Facebook looks like he fits the bill (pictured).

He “likes” PETCO and Dr. Paul Dyer, a new-agey self help guru who helps people become more passionate about their life in 12 weeks.

And here’s what we found out about Velite.

  • Coolidge founded it in 2005.
  • The “Velites” were a class of infantry in the Polybian legions of the early Roman republic.
  • Some of the other people working there include Kelly Hill, a former energy trader and the director of operations, Clifton White, a former trader and Velite’s “fundamental analyst,” Brad King, the vice president, Stephen Naehr, the director of analytics, and Kyle Cooper, the managing director. 

Coolidge’s August performance seems unique and impressive for now, but he might just be the first energy success story we’re hearing about. Today Bloomberg has an article about energy bulls returning to the market – apparently net-long positions on the New York Mercantile Exchange climbed 8 per cent in the week ended September 7, the first increase since the seven days ended August 3.

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