Crude Carnage Goes Contagious As Brevan Howard Liquidates Underperforming Commodity Fund

Submitted by Tyler Durden on 11/30/2014 19:08 -0500

• Brevan Howard
 
• Copper
 
• Crude
 
• OPEC
 
• Wall Street Journal

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The entire commodity complex is seeing major contagion-like price declines in early trading. WTI Crude is back below $65 for the first time since May 2010 - now down 16% since the initial leaks of OPEC's decision last Wednesday. Gold and Silver are getting whacked and copper has plunged below 300 - back at its lowest since June 2010. The news over the weekend that Brevan Howard is liquidating its $630 million commodity hedge fundfollowing recent poor performance is also likely not helping as what looked like late-Friday margin call liquidations are extending notably this evening.

WTI is down 16% since the initial OPEC decision leaks last week by Venezuela...

And volume is heavier than normal for a Sunday night

As The Wall Street Journal reports,

Brevan Howard Asset Management LLP plans to close its commodity hedge fund following recent poor performance, according to two people familiar with the matter.

The fund, managed by Stephane Nicolas, has $630 million in assets. It lost 4.2% last year and is down 4.3% this year to the end of October, according to performance data reviewed by The Wall Street Journal.

It is not clear what Mr. Nicolas’s role might be following the commodity fund’s closure, a person familiar with the matter said. Attempts to reach Mr. Nicolas were unsuccessful.

Brevan Howard is among Europe’s largest hedge fund managers with about $37 billion in assets.

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