This is the first time we’ve covered BlueGold Capital Management so here’s their background: Founded by Pierre Andurand and Dennis Crema, BlueGold is a London based hedge fund that trades in commodities markets, primarily in oil derivatives. Before founding the firm, they were both senior oil traders at Vitol S.A. and they seek absolute returns “through discretionary fundamental trades, directional and relative-value.” They were up a whopping 209.4% for 2008, a year in which many other hedge funds struggled. Year to date for 2009, BlueGold is up 59.8%. Given that BlueGold primarily trades crude oil, we’d be remiss if we didn’t include a technical look at crude oil for reference.
Their November investor letter provides some interesting commentary on the economy on a macro level. Specifically, their macroeconomic thoughts are pinpointed in a few main talking points. Firstly, Stephen Jen (the author of this section of the letter) feels that the world will gradually recover and should continue on this course at least until next summer. He feels recent risks such as Dubai’s crisis are more-so a temporary distraction rather than a fundamental problem that will begin a wave of sovereign defaults.
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