Pierre Andurand posts blockbuster gains after bet on rising oil prices

Pierre Andurand posts blockbuster gains after bet on rising oil prices

Pierre Andurand is among a group of hedge fund managers who have notched up sharp gains in recent weeks as fears of global supply disruptions sent commodity prices soaring to the highest level in 14 years.

Andurand’s Discretionary Enhanced hedge fund has posted gains of around 109 per cent in the year to early March after betting that crude oil prices would rise, according to people familiar with the fund’s performance. Other funds, including Kenneth Tropin’s Graham Capital and Paris-based CFM, have also profited from big moves in energy prices.

The gains by Andurand, who manages around $1.1bn, come during a frenetic year in commodities markets. Oil prices have soared by about 50 per cent since the end of 2021, while a broad basket of raw materials tracked by the S&P GSCI index is up by a third to its highest level since 2008. The gains accelerated sharply in recent weeks after Russia invaded Ukraine and the west hit Moscow by imposing unprecedented sanctions. Russia is a major supplier of oil, gas and — along with Ukraine — grains such as wheat.

“Investors who are long commodities — whether by luck or skill — have had a great year packed into a few