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August 04, 2006
Is it the End of The Road for MotherRock?
Poor performance is leading to the closure of MotherRock Energy Master Fund, the hedge fund that invests in gas futures. The fund had a terrible year as New York gas prices fell by 66 percent from an all-time high in December. The fund, which had customer funds worth $400 earlier this year, registered heavy losses in July, but a specific date has not yet been set for the closure. MotherRock returned 20 percent to its investors in net fees last year, but sustained a loss of 23 percent during the first six months of 2006. Bloomberg reports:
“The volatility in these markets is very large,” said Craig Pirrong, director of energy markets at the University of Houston's Global Energy Management Institute. “That means the prospects for large profits are there, but the prospects for large losses are there too.”
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