BlueGold commodity #hedgefund liquidates portfolio

BlueGold Capital, one of the world’s largest commodity hedge funds, just announced that it is liquidating its portfolio, according to the FT.

Previously known for it’s ability to generate massive returns (209% in 2008 and 55% in 2009), 2011 saw BlueGold Capital diversify away from their core specialism in oil.  This resulted in a subsequent loss of confidence from their investors and a drop in the value of its portfolio by 34%. Read the complete FT article

BlueGold Capital are not alone in their woes though.  We’ve seen commodity funds across the board suffer the effects of market volatility recently, so is the decision to shut down a step too far? 

Could BlueGold Capital have regained investor confidence once the markets stabilise?

Let us know what you think below…