Hedge fund manager Zach Schreiber stood on stage at Avery Fisher Hall in New York eight months ago and made a bold prediction.
'We believe crude oil is going lower -- much lower', Schreiber, 42, told the audience of roughly 3,000 investors, including some of the biggest money managers in the industry. 'If you are long, I’m sorry for you'. Then he showed a slide of a car stuffed with clowns.
Bloomberg News reports that Crude was trading at $99 a barrel that day, bolstered by speculation that Russia’s annexation of Crimea and incursions into Ukraine would crimp shipments. Prices crept up over the next weeks peaking in June at $107. Then, as Schreiber predicted, the dive began.
The investment firm’s profit was about $2bn in 2014 with about half of that from the oil trade, according to people familiar with the matter, who asked not to be identified because the firm is private.
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