A number of energy-focused hedge funds including Cayler Capital and Northern Trace Capital posted losses last month amid low volatility in global oil markets which presented challenges for traders and algorithmic strategies, according to a report by Bloomberg.

The report cites an investor letter seen by Bloomberg as revealing that commodity trading advisor Cayler posted a decline of almost 9% in May, taking its year-to-date loss to about 13%, with much of loss coming from fuel markets.

Hedge fund Northern Trace finished May down more than 1%, despite having been up 3% at one point in the month, according to an unnamed Bloomberg source.

The losses came as a key measure of volatility in the oil market fell to the lowest level seen since 2019, with prices trading in a range of less than $6 a barrel during the month.