Legendary investor Boone Pickens closes energy hedge fund amid setbacks

Legendary investor Boone Pickens closes energy hedge fund amid setbacks

Legendary investor Boone Pickens closes energy hedge fund amid setbacks

Oil tycoon T. Boone Pickens is closing the doors on his massive energy-focused hedge fund, citing health issues and waning interest.

Pickens, 89 years old, said in a letter posted online that he plans to focus on his health and on entrepreneurship, philanthropic and political activities. He's still recovering from a series of strokes he suffered late previous year and a major fall over the summer. "It's no secret the past year has not been good to me, from a health perspective or a financial one".

"Trading oil is not as intriguing to me as it once was", he wrote.

The new family-office structure would help his fund sidestep some of the regulatory oversight it was under. Last year, funds that bet on an oil-price recovery were hit as crude in June fell to $42.05, the low for the year.

BP Capital's closure comes five months after oil-trading "God" Andy Hall closed his flagship fund Astenbeck Master Commodities Fund II.

Pickens rose to national prominence in the 1980s when he led a series of takeover attempts, targeting Phillips Petroleum, Unocal and Gulf Oil, among other companies. The second came in 1996, when he resigned from Mesa Petroleum, which he had founded and led as CEO for almost 40 years. Pickens always denied that.

In the latest Forbes Magazine listing, Pickens's net worth is listed at $950 million in 2013, reflecting losses from the 2008 financial crisis, hundreds of millions Pickens spent on philanthropy (including about $500 million to Oklahoma State University, his alma mater) and investments in wind energy, part of his plan to end USA dependence on Middle East oil.

Brian Bradshaw and David Meaney, executives of the shuttered Pickens hedge fund, BP Capital, have started their own hedge fund, Assert Capital Management LP. While the number of hedge funds shutting operations declined previous year, there were still 66 more firms closing than starting, Eurekahedge data show. It plans to raise another $200 million this summer, Meaney said in an interview.

Pickens remains involved in his charitable foundation and on the board of Clean Energy Fuels Corp, which operates natural gas refueling stations. After retiring at 68, he formed the energy investment firm BP Capital, where he made his first billion dollars.

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