Zach Schreiber, the hedge fund manager who said at the Ira Sohn Conference in May that the price of oil was going lower made about $US1 billion on his short, according to a report from Bloomberg’s Katherine Burton, Kelly Bit, and Simone Foxman.
Bloomberg reports that Schreiber’s PointState Capital gained 27% after fees in 2014 with the firm’s profit coming in at $US2 billion for the year.
About half that profit was from his oil trade, Bloomberg reported.
Back in November when the price of oil cratered over the Thanksgiving weekend after OPEC declined to cut production in the face of declining oil prices, we first highlighted Schreiber’s comments from the Sohn Conference.
In May, Schreiber said that oil prices were going “lower, much lower,” and added that, “US crude is being drilled for by the same cast of characters who oversupplied the natural gas market. Ladies and gentlemen, the song remains the same.”
Schreiber’s call looked prescient back in November as West Texas Intermediate crude prices fell below $US70 for the first time in four years during the Thanksgiving holiday. And since then, oil has done nothing but go lower. On Wednesday morning, WTI was trading at around $US48 a barrel.
Schreiber said at the Sohn Conference that, “Crude strength has led to complacency and complacency is a killer.”
It seems doubtful the market is complacent any longer.