There are some very intriguing flashes coming out on Reuters regarding the BlueGold hedge fund on Friday:
RTRS-HEDGE FUND BLUE GOLD DENIES IT WAS RESPONSIBLE FOR VOLATILITY IN CRUDE OIL PRICES IN LAST FEW DAYS
RTRS-HEDGE FUND BLUE GOLD SAYS OIL OUTLOOK BULLISH FOR 2010, DIFFICULT TRADING ENVIRONMENT
RTRS-HEDGE FUND BLUEGOLD SAYS BUSINESS AS USUAL, DENIES RUMOURS ABOUT ITS CONTINUING OPERATIONS
Readers might remember BlueGold for poaching one of Morgan Stanley’s most respected FX analysts, Stephen Jen, back in May last year.
Right as always, there then.
In any case, some more details coming through from Reuters suggest traders attributed WTI’s 5 per cent sell-off on Thursday to hefty liquidations by the commodity hedge fund.
Here, meanwhile, is a chart of recent WTI activity courtesy of Olivier Jakob at Petromatrix:
So is this an example of some delta hedging gone wrong for BlueGold?
We’ll keep you posted on anything we hear.