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CNBC – About half of the investors in T. Boone Pickens’ energy-oriented equity hedge fund have asked to withdraw their money on the heels of losses of about 60 percent this year, the Wall Street Journal said, citing people close to the matter.
Pickens and his investment fund have lost $2 billion since peaking in late June, Pickens told the CBS program ’60 Minutes’ on Sunday.
His fund, BP Capital, will have about $400 million to $500 million after expected withdrawals, the Journal said.
A few weeks ago, Pickens moved the fund almost entirely into cash to help ride out the volatility in the energy patch, the paper said, citing people close to the matter.
ABC News – European stock markets opened higher Tuesday after Japan’s Nikkei index recovered from 26-year lows, with Germany’s DAX further boosted by another steep rise in the value of Volkswagen AG shares.
The FTSE 100 index of leading British shares was 92.62 points, or 2.4 percent, higher at 3,945.21, helped along by a near 6 percent rise in BP PLC’s share price after the oil giant revealed an 83 percent increase in net profit in the three months from July to September to $8.05 billion.
Houston Chronicle – Boone Pickens, the billionaire founder of BP Capital LLC, said 15 percent of his hedge funds’ holders have asked for the option to withdraw their money after he lost more than $1 billion in energy trades this year.
Pickens, who manages funds linked to energy commodities and equities, said his equity fund has taken a "real hit" as oil company stocks and oil prices have plummeted.
"I feel like all my fingers are mashed in the door right now," Pickens, 80, said on CNBC today. "I’m trying to get someone to open the door for me."
The Wall Street Journal reported last week that Pickens was having his worst performance in 10 years, with his funds losing about $1 billion.
"It’s more than that now," Pickens said.
Pickens said his funds require a 90-day notice to withdraw money, "so if we can recover in the fourth quarter," people might reconsider exiting.
Reuters – The commodity half of oil tycoon T. Boone Pickens’s BP Capital hedge fund lost 35 percent of its value in July, the New York Post said, citing sources.
The fund is believed to be down about 10 percent for the year, the paper said.
A Pickens spokeswoman told the paper that commodity-fund investors were informed that the steep decline in natural gas and oil prices has had an adverse impact on its performance.
"We continue to analyze the market and adjust accordingly," the spokeswoman was quoted as saying.
