MotherRock, one of the largest hedge funds in New York to trade in natural gas, is unplugging from the industry. According to Crain’s New York Business, the HF, which had $430 million in assets under management after just a year or so in business, was battered in June and July by losses in the highly volatile natural gas market. In the past week, natural gas futures spiked more than 30%. In a letter to investors of the MotherRock Energy Master Fund obtained by Bloomberg News and Dow Jones Newswires, founder Robert “Bo” Collins, a former president of the New York Mercantile Exchange, expressed regrets for the “terrible performance and its impact on” their investments. Just how terrible? Bloomberg reports MotherRock lost 23% in the first half of 2006, with July producing “significant losses,” according to Collins. While the HF’s management has recommended the shutdown, it’s not a done deal; the board of directors has yet to vote on it. Last year, MotherRock did in fact rock, with net gains of 20% on its investments, reports Crain’s. Meanwhile, the New York Mercantile Exchange has issued a statement that MotherRock’s closure poses no threat to any “clearing members or other customers.”
