Key Takeaways
- • $1.2 billion AUM as of December 2017: Andurand Capital Management operates globally across London, Malta, and New York with 27 staff, positioning itself as a diversified energy asset manager spanning fossil fuels and renewable energy alternatives.
- • Flagship fund delivers 114.5% cumulative returns: The Andurand Commodities Fund, launched in February 2013 through December 2017, has generated approximately 3,700% in cumulative returns across Pierre Andurand's energy trading career, demonstrating consistent outperformance in commodity futures.
- • Two new strategies launched in 2017: Andurand introduced a UCITS-compliant commodity futures strategy and a commodity equity long/short fund (AC Equity Fund), with the latter posting 9.5% net returns since July 2017 inception through December 2017, enabling both directional and security-specific positioning.
- • Bullish oil price thesis strengthened in 2017: Multiple market developments emboldened management's call for higher energy prices and increased price forecast ranges; the firm identified large inventory draws in non-OECD physical markets and high-cost storage areas that the broader market had underappreciated.
- • Expanding mandate beyond traditional commodities: The firm's long-term strategic vision encompasses alternative and renewable energy alongside conventional fossil fuels across multiple asset classes, with dedicated analytical resources allocated to emerging energy transition themes.
Summary
Andurand Capital Management has evolved into a global energy asset manager with $1.2 billion under management as of December 2017, operating from three geographic centers: London, Malta, and New York. The firm maintains a lean operational structure of 27 employees focused on discretionary, fundamental investment strategies. The New York office, the smallest of the three locations, houses three staff members primarily engaged in commodity futures research, supplemented by one analyst examining alternative energy opportunities.
The firm's flagship Andurand Commodities Fund has delivered exceptional performance since its February 2013 inception, posting 114.5% returns through December 2017. This performance reflects the broader success of Founder and Chief Investment Officer Pierre Andurand's energy trading career, which has generated approximately 3,700% in cumulative returns across his trading tenure. The fund employs discretionary, fundamental analysis to identify energy market dislocations and construct directional positions.
During 2017, Andurand rolled out two distinctive product offerings designed to broaden its institutional client base. The first is a UCITS-compliant version of its commodity futures trading strategy, providing European-regulated access to the firm's core energy trading expertise. The second is the Andurand Commodity Equity Fund (AC Equity Fund), a long/short strategy launched in July 2017 that uses commodity equities to express both directional commodity price views and security-specific insights on individual companies. The AC Equity Fund generated 9.5% net returns from inception through December 2017, demonstrating the viability of the equity implementation methodology.
Entering 2018, Andurand maintained a constructive outlook on energy prices and selected energy equities, positioning both strategies for what management believed to be undervalued opportunities. Throughout 2017, multiple market developments reinforced the firm's bullish thesis, prompting an increase in oil price forecasts across its range scenarios. The firm identified significant inventory draws occurring in non-OECD physical markets and regions with elevated storage costs—dynamics not readily visible in futures market data—which supported its conviction in tightening supply fundamentals. This analytical differentiation, grounded in monitoring alternative data sources beyond conventional market indices, exemplifies Andurand's fundamental investment approach and has informed both its commodity futures and equity strategies.
The firm's flagship Andurand Commodities Fund has delivered exceptional performance since its February 2013 inception, posting 114.5% returns through December 2017. This performance reflects the broader success of Founder and Chief Investment Officer Pierre Andurand's energy trading career, which has generated approximately 3,700% in cumulative returns across his trading tenure. The fund employs discretionary, fundamental analysis to identify energy market dislocations and construct directional positions.
During 2017, Andurand rolled out two distinctive product offerings designed to broaden its institutional client base. The first is a UCITS-compliant version of its commodity futures trading strategy, providing European-regulated access to the firm's core energy trading expertise. The second is the Andurand Commodity Equity Fund (AC Equity Fund), a long/short strategy launched in July 2017 that uses commodity equities to express both directional commodity price views and security-specific insights on individual companies. The AC Equity Fund generated 9.5% net returns from inception through December 2017, demonstrating the viability of the equity implementation methodology.
Entering 2018, Andurand maintained a constructive outlook on energy prices and selected energy equities, positioning both strategies for what management believed to be undervalued opportunities. Throughout 2017, multiple market developments reinforced the firm's bullish thesis, prompting an increase in oil price forecasts across its range scenarios. The firm identified significant inventory draws occurring in non-OECD physical markets and regions with elevated storage costs—dynamics not readily visible in futures market data—which supported its conviction in tightening supply fundamentals. This analytical differentiation, grounded in monitoring alternative data sources beyond conventional market indices, exemplifies Andurand's fundamental investment approach and has informed both its commodity futures and equity strategies.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.