SAN FRANCISCO (Dow Jones)--Centaurus Energy, a big hedge-fund firm run by billionaire natural-gas trader John Arnold, may be on course for its first down year, Institutional Investor reported Monday.
Arnold's fund was down 2.7% through October, despite a 7.9% gain that month, Institutional Investor said, citing unidentified "knowledgeable sources."
The performance highlights what has been a tough year for commodities trading.
A representative at Centaurus Energy's Houston office didn't immediately respond to an email seeking comment.
Arnold has become one of the world's top energy traders since he started Centaurus Energy in 2002. In 2005 the firm generated a return of 160%, Institutional Investor noted. The year after that, Centaurus Energy returned about 200% as another hedge-fund firm, Amaranth Advisors, collapsed under the weight of massive natural-gas losses.
In 2007 and 2008, when the financial crisis left many hedge funds with record losses, Centaurus Energy returned roughly 50% a year. In 2009, the firm generated gains of 29.2%, according to Institutional Investor.
Those returns have made Arnold a billionaire. Earlier this year, he joined a group of America's richest people in publicly pledging to give at least half of their money to charity.
Saw that on Abnormal Returns. Dude's performance in nothing short of remarkable regardless of this year. Since you're in the field monty09, do you have any thoughts on this?
no comment
All I remember is reading his profile a few years back as one of the youngest multibillionaires in the world, and it made me hungry.
reading wendys dollar menu does the same thing to me
Pretty sure was the youngest before Zuck took that title.
Very tough year for the industry. When volatility is low, makes people put on larger bets. Low voliatility gives little chances, they got burned a couple times. The market has not given them much chance to make it back.
That said I will wait till Dec 31, to see if they end the year down. Nov/Dec ha been a different animal.
Didn't he work at Enron before? I remember reading about him a while back.
Yes, Vandy undergrad, received the highest bonus Enron ever paid out (8 million).
Bloody hell that's impressive.
Arnold is a beast, I think he trades mostly his own money now.
he traded mostly his own money then
Great Wunderkind Read... http://money.cnn.com/2009/11/23/news/companies/centaurus_john_arnold.fo…
Classic quote..."Once you get past a certain level of income, it's all about the philanthropy."
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