Andurand's Levered Oil Fund Bleeds 52% in Two Weeks, Erasing Q1 Gains

Pierre Andurand's flagship commodity fund has suffered a catastrophic drawdown in early April, shedding approximately 52% of its value in just the first two weeks of the month. The collapse, first flagged by observers who noted the fund's precarious levered long oil positioning during the April 7 oil crash, has effectively wiped out all first-quarter gains accumulated during the initial Iran conflict-related oil surge. The fund is now down nearly 37% year-to-date through April 17—a remarkable reversal for a manager who was, just weeks earlier, celebrated as the best-performing hedge fund in March.

The blowup exposes the inherent risk in Andurand's approach, which relies on heavily concentrated, directionally levered bets rather than traditional hedging. Unlike conventional hedge funds designed to offset risk, Andurand's strategy functions more as a commodity speculation vehicle, amplifying exposure to energy price movements in both directions. Sources indicate the fund's March performance was driven almost entirely by bullish oil positioning ahead of geopolitical escalation, leaving it severely exposed when crude prices reversed sharply during early April.

The episode has reignited scrutiny of levered commodity funds and their susceptibility to sudden market dislocations. Despite oil trading substantially higher on a year-to-date basis, Andurand's fund has managed to lose nearly four-tenths of its value—a performance gap that raises questions about position sizing, risk management controls, and the sustainability of highly concentrated directional bets in inherently volatile energy markets.