Energy-focused hedge fund manager e360 Power has adopted a more conservative trading approach after closing its flagship fund following losses and investor redemptions tied to volatile US natural gas and power markets, according to a report by Bloomberg.
The Austin-based firm shut down e360 Power Fund, LP in December 2025 after a difficult year in which market turbulence, including sharp moves following President Donald Trump’s April 2025 tariff announcements, weighed heavily on performance. The closure marks the second time in less than a decade that the firm has wound down a flagship vehicle.
Sources cited by Bloomberg reported that assets had fallen from roughly $400 million in mid-2024 to less than $100 million, now managed through separately managed accounts. Performance losses and investor withdrawals ultimately left the fund too small to justify operating costs.
e360, which continues to trade actively with a team of fewer than 10 employees, is now targeting steadier returns through a lower-volatility strategy. The firm reportedly generated gains of between 8% and 10% during the first five months of 2026 after raising fresh capital earlier in the year.
The setback follows a period of exceptional performance, with the firm posting returns of 188% in 2021 and 97% in 2022 before market conditions turned against the strategy.
e360 Power declined to comment
