Andy Hall is closing down his flagship Astenbeck Master Commodities Fund II.
- The rise of machine-based algorithmic trading is injecting so much volatility into oil markets, it’s now difficult to produce returns by doing the type of fundamental analysis for which Hall is known, he told investors in a letter obtained by Bloomberg News
- “Algorithmic trading systems have increasingly come to dominate,” Hall wrote. “Investing in oil under current market conditions using an approach based primarily on fundamentals has therefore become increasingly challenging. It seems quite likely this will continue to be the case for some time to come.”
But, yeah, nah, its all the algos fault.