Pierre Andurand’s flagship hedge fund – the Andurand Commodities Discretionary Enhanced Fund – staged a dramatic comeback in November, delivering a 23% return that reversed losses accumulated earlier in the year, according to a report by Bloomberg.
The performance has revitalised Andurand’s investment firm, which has seen wide swings in gains and losses throughout 2024.
The report cites an unnamed person familiar with the matter as revealing that the fund, which operates without fixed risk limits, rebounded sharply last month, bringing its year-to-date gain to 13.8%, marking a significant turnaround from a 7.6% loss through October. Meanwhile, the Andurand Commodities Discretionary Fund, a less aggressive counterpart, rose 13.5% in November and is now up 9.3% for the year, having previously recording a 3.7% decline.
Andurand Capital Management, which managed approximately $900m as of October’s end, declined to comment on the performance.
The November rally appears to have been driven by strategic positions in cocoa and copper. In an October letter to clients, Andurand expressed high confidence in cocoa prices, describing the market as poised for explosive growth due to a global supply crunch. Poor harvests in West Africa have led to record-high cocoa prices, with New York cocoa futures soaring 37% in November alone. The rally was further fuelled by dwindling US port stockpiles and ongoing crop concerns, making cocoa one of 2024’s top-performing commodities.
Andurand also held a bullish stance on copper, citing strong conviction in its upward trajectory.
Although oil prices were relatively flat in November — Brent crude ended the month down 0.3% — Andurand had resumed trading in oil after stepping away from the market earlier in the year. He maintained modest long positions in oil futures and options, intending to remain nimble and react quickly to OPEC+ policy changes or geopolitical developments.
Oil markets briefly spiked during the month amid fears that escalating conflict in the Middle East might disrupt exports. However, prices eased as hopes for a cease-fire between Israel and Hezbollah shifted focus back to faltering demand in China and robust supply from the Americas.
