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The 'God' of oil trading is getting crushed by the commodities slump

Aug 6, 2015, 23:58 IST

Firefighters work to put out the fire of a storage oil tank at the port of Es Sider in Ras Lanuf December 29, 2014.REUTERS/Stringer

A commodities hedge fund run by star trader Andy Hall is getting hammered by the collapsing oil price.

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Hall's Astenbeck Capital Management fund lost about 17% in July, Reuters reports, citing an investor letter.

That is the second largest loss the fund has ever experienced. Its assets under management are now about $2.8 billion, down from $500 million in June, according to Reuters.

The oil fund also posted losses in May and June, according to Reuters.

Hall, who according to a 2013 Max Abelson profile is known to competitors as "God," gained notoriety as the leader of Phibro when he demanded a $100 million pay package from then-owner Citigroup during the financial crisis.

Oil and other commodities prices have collapsed in the last 12 months.

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The S&P GSCI commodity index, which is made up of the most liquid commodity futures, is down around 44% over the past 12 months.

This is not the first commodities fund to get burnt by the collapse in commodities prices.

The Carlyle-backed Vermillion recently saw its assets drop from nearly $2 billion to less than $50 million. Its cofounders have left the firm.

Bloomberg recently reported that London-based Armajaro Asset Management will close its $450 million commodities fund after it fell around 11% in the first half of 2015.

Bloomberg also reported that Black River Asset Management is liquidating four hedge funds, including its commodities fund.

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David Einhorn's Greenlight Capital and Greenlight Capital Re, the fund's reinsurer, have also been dragged down by the slump in gold prices.

We have reached out to Astenbeck Capital Management for comment and will update if we hear back.

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