Andurand Hedge Fund Makes Strong Comeback, Gaining 20% After Devastating 55% Loss

Pierre Andurand’s high-risk hedge fund, the Andurand Commodities Discretionary Enhanced Fund, has made a remarkable recovery after enduring a devastating 55% loss in 2023. The fund has gained 20% so far in 2024, according to a Bloomberg report.

The report, which cites anonymous sources familiar with the matter, confirmed the fund's performance up until 22 March. Andurand, known for running the fund without fixed risk limits, was severely impacted in 2023 by bets on rising oil prices that backfired. The fund suffered heavy losses as Brent Crude prices fell by around 10%, forcing Andurand Capital Management, which managed approximately $1 billion by the end of 2023, to scale back its risk exposure. This move to de-risk the fund was reported by Bloomberg in January.

The strong start to 2024 comes as oil prices have surged by about 14%. Several key factors have contributed to the price increase, including disruptions in supply caused by the ongoing conflict in the Middle East, damage to crucial Russian energy infrastructure by Ukraine, and an uptick in global demand for oil. These developments have led to a more favourable market environment for Andurand’s fund, allowing it to recover from last year's significant losses and generate positive returns.