Are we in the midst of a great unwinding of commodities stocks? When Ospraie announced it was closing down its flagship hedge fund after suffering crippling losses in the commodities markets, many began looking around to see who else might be injured. Lehman Brothers, which took a 20% stake in Ospraei, was an obvious candidate. But what about the other hedge fund players who may have taken positions similar to Ospraie?
CNBC's Bob Pisani just said that "what's really got people talking" is the movement of the commodities stocks. "We're seeing some liquidation in some of these big commodity names," he said. "This is not normal and it's fueling speculation that their are other funds that are out there that are liquidating commodities stocks."
Is Bob right? Our usual sources on this stuff have been unhelpful, pleading ignorance due to over-extended Labor day vacations. So let's take a survey of the readers. Who is liquidating commodities stocks? What's driving the sell-off?
Posted by guest , Sep 03, 2008 12:45PM
First, Mayo.
Posted by guest , Sep 03, 2008 12:46PM
Sham-wow 1st
Posted by guest , Sep 03, 2008 12:50PM
"This is not normal and it's fueling speculation that their are other funds that are out there that are liquidating commodities stocks."
Comon JC
Posted by guest , Sep 03, 2008 1:00PM
Too long, didn't read.
Posted by guest , Sep 03, 2008 1:06PM
crowded trade, economies rolling over around the world, chinese industrial production now at a 17 month low. Etc...etc...
Posted by guest , Sep 03, 2008 1:06PM
the first one to document a credible link between soros, pickens and the manipulation of crude since 2004 gets a gold star.
russia's in there, too.
Posted by guest , Sep 03, 2008 1:06PM
wow, there's about 1 typo per paragraph up there.
Posted by guest , Sep 03, 2008 1:28PM
it seems that Mr. Pisani has a history of Mayo and more recently Sham-wow speculations something for all of us to keep an eye on.
Posted by guest , Sep 03, 2008 1:28PM
it seems that Mr. Pisani has a history of Mayo and more recently Sham-wow speculations something for all of us to keep an eye on.
Posted by guest , Sep 03, 2008 1:29PM
it seems that Mr. Pisani has a history of Mayo and more recently Sham-wow speculations something for all of us to keep an eye on.
Posted by guest , Sep 03, 2008 1:31PM
what a moron nice 3 poster # 8 9 and 10
Posted by guest , Sep 03, 2008 1:31PM
phibro
Posted by guest , Sep 03, 2008 1:34PM
I think that # 8,9 and 10 is Vince Offer posting.
Posted by guest , Sep 03, 2008 1:46PM
The energy sector has been selling hard since the end of June, when we had the frenzy in the oil pits from SEMGroup blowing up. The carnage is showing up now in the YTD numbers of the commodity based funds.
Some fund managers had enough fat built up during this spring run that they have weathered the storm, however with end of Sept coming and two months of hard selling in the rear view mirror, typical F of F managers are bailing and causing a secondary cascade of sells to hit the market.
XLE is still up YTD, and the XLF is still red YTD. The fat profits have been removed from both trades, and the market is evaluating how much real damage was done by Gustav.
The counter trend rally in banks for the last 6-8 weeks is about over and with the need to roll billions in short term debt, it will be the banks leading to the downside sooner rather then later.
Having said all of the above, while still green YTD, I have given back over 20% of my YTD gains, from Junes high water mark this year. Its not easy being long or short anything in this market at this point in time.
Good luck to the other PMs out there...
Posted by guest , Sep 03, 2008 1:47PM
I got a hot scoop for you:
Easy Mother Fucking E did not die from the acquired immunodeficiency syndrome (aka The Slims).
Posted by guest , Sep 03, 2008 2:00PM
When the list of investors in Ospraie comes out, and it will soon(watch this space), it shall become clear how the FoFs begged to invest in an supposedly "established" but very bloated fund run by a heli-skiing "steward" was full of shit as regards risk management among other things.
Next up..the investors and their excuses..
Posted by guest , Sep 03, 2008 2:08PM
Re an Ospraie idea gone sour, see below
How is Sandridge Energy doing?
http://www.sandridgeenergy.com/Portals/0/images/SandRidge2008/namebox.jpg
you have to love the "Sandridge Energy's name is carefully "crafted" to..."
I imagine it was carefully crafted by a combo team from JWT and inmates at San Quetin!
Posted by guest , Sep 03, 2008 2:09PM
bob is wrong as usual,the only liquidation in his future is the mayo pearl necklace he got last nite from his boyfriend
Posted by guest , Sep 03, 2008 2:23PM
16 please elaborate on the heli-skiing
Posted by guest , Sep 03, 2008 2:24PM
#18, aren't you talking about his past?
Posted by guest , Sep 03, 2008 6:12PM
hedge fund redemptions
Posted by guest , Sep 03, 2008 6:32PM
bur Bob worked for Sandridge!
Posted by guest , Sep 04, 2008 8:48AM
hey #14, stop trying to talk like a trader and settle my trades you back office chimp...
Posted by guest , Sep 05, 2008 2:34PM
John Carney, are you the kicker for the Giants? Good game last night
Posted by guest , Sep 06, 2008 12:39PM
Lehman Brothers Holdings Inc., which bought a 20 percent stake in Ospraie in 2005 for an undisclosed amount, stood by Anderson. And investors, led by Zurich-based Credit Suisse Group, poured $3 billion in new money into Ospraie from June 2006 to October 2007.
``We're a huge fan,'' says Brian Finn, 47, who runs Credit Suisse's New York-based alternative investments group, which manages $134 billion in private equity and hedge fund assets.