Andurand’s Biggest Hedge Fund Surges 162% on Commodities Rally

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(Bloomberg) — Commodities trader Pierre Andurand is heading for a stellar first half, with the biggest of his funds returning 162% so far this year, according to a person with knowledge of the matter.

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The advance by the Andurand Commodities Discretionary Enhanced Fund, which holds half of the trader’s $2 billion in managed assets, follows a gain of 87% in 2021. His older Andurand Commodities Fund, which holds $750 million, closed up 41.5%. The Andurand Climate and Energy Transition Fund, launched last summer, returned 14%.

The Bloomberg Commodity Spot Index, which tracks energy, metals and crop futures, has climbed about 30% this year amid a combination of surging consumption and Russia’s war in Ukraine.

Last year, Andurand predicted that the world was entering a bull market for commodities, supported by a global shift toward decarbonization.

The Discretionary Enhanced Fund is up more than 12 times since January 2020, when the pandemic began to roil world commodity markets. In April 20 of that year Andurand tweeted that negative crude prices were “possible,” a day before West Texas Intermediate futures recorded a once-unthinkable settlement of minus $37.63 a barrel.

Raw materials have soared since bottoming out in the early days of the pandemic, driven by massive stimulus spending, production cuts and widespread bottlenecks across supply chains.

The move, fueling the highest inflation in four decades and prompting central banks to raise interest rates, was exacerbated by Russia’s invasion, which further disrupted energy and grain supplies. Signs that China is easing tough measures to fight the coronavirus have also helped send prices higher.

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