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Bloomberg
The energy fund at Zimmer Partners posted its worst quarter ever after sinking about 46% in March as oil markets plunged.
The fund dropped 55% in the first quarter after losing money each month, according to an investor letter seen by Bloomberg.
The fund, which ran $1 billion at the end of January, now has about $500 million in assets.
The oil price war ravaged the energy industry last month and helped send Brent crude to its lowest in nearly two decades. Making matters worse, the coronavirus pandemic has wiped out demand for crude amid an oversupply threatening the survival of oil producers and the economies of oil-dependent nations.
Brent fell to about $22 a barrel at the end of March from almost $70 at the beginning of the year.
Zimmer’s energy fund, which started in October 2014, didn’t stand much of a chance in these markets. It is long-biased, meaning it mostly wagers that stocks will rise. The fund focusses on areas including electric and gas utilities, renewable and independent power producers, midstream infrastructure companies and explorers and producers.