For much of the credit crisis, commodities traders had an easy time of it by going long energy. Last month that bet turned sour, as prices for oil, gas, soy corn and other commodities began falling. But July was a banner month for many Brian Hunter, the trader whose natural gas trades helped trigger the collapse of the hedge fund Amaranth nearly two years ago.
Hunter, you'll recall, is advising the Peak Ridge Commodity Volatility Fund. According to Bloomberg the fund clocked in a 24 percent return in July. Year to date, the fund is up around 230 percent, according to an unnamed investor who spoke to Bloomberg.
Hunter, who is said to blame his former bosses at Amaranth and others on Wall Street for his 2006 failures, may be feeling like he is on top of the world once more. Trading well is the best revenge.
Hunter, Touradji Hedge Funds Gain as Commodities Sink [Bloomberg]