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Legendary U.S. investor Boone Pickens closes energy hedge fund after setbacks

Reuters  |  HOUSTON 

By Jessica Resnick-and Gary McWilliams

HOUSTON (Reuters) - Legendary investor T. Boone said on Friday he had closed his Dallas-based hedge after health and financial upsets, the latest oil-focused to report setbacks.

Pickens, 89, said in a letter posted online that he planned to focus on his health and entrepreneurship, philanthropic and political activities. He is still recovering from a serious fall last summer and suffered a series of strokes in late 2016.

"Trading is not as intriguing to me as it once was," he wrote. "It's no secret the past year has not been good to me, from a health perspective or a financial one."

Pickens' fund, which he formed in 1996, struggled with its bets and assets fell well below a peak of $2 billion in 2007, said Jay Rosser, at The fund, which lost money in two of the last three years, had about 125 investors prior to its closing, he added.

Several major commodities funds also lost money on wagers or shut in recent years. Last year, funds that bet on an were hit as crude in June fell to $42.05, the low for the year.

trader last year closed his main after betting would more quickly pull out of a rout that started in late 2014. Pierre Andurand's Andurand Commodities lost 4.47 percent in 2017, according to data from HSBC, while Merchant Commodity fell 11.6 percent last year and is down 0.4 percent so far in 2018.

In 1956, founded an production company that became and ran it for nearly 40 years.

gained notoriety and celebrity in the 1980s as a dealmaker who launched leveraged buyouts of companies including Phillips Petroleum Co, Gulf Corp and Even though many did not succeed, he and his investors made substantial money from the sale of stock of his targets.

That willingness to sell his shares back to the company at a premium, a practice known as "greenmail," led to accusations he was not interested in improving or running the companies he challenged. always denied that.

A decade ago, he unveiled his "Plan," a lobbying effort to wean the from the Organization of the Petroleum Exporting Countries (OPEC) by championing the use of alternative and He spent in excess of $100 million to promote the effort, a said.

and David Meaney, executives of the shuttered hedge fund, BP Capital, have started their own hedge fund, Assert Capital Management LP.

Their commodities will start operations next week with about $25 million, mostly from past investors. It plans to raise another $200 million this summer, Meaney said in an interview on Friday.

remains involved in his charitable foundation and on the board of Fuels Corp , which operates refueling stations.

Two of Pickens' investment vehicles, funds Partners and Advisors, remain in operation.

(Reporting by Jessica Resnick-and Gary McWilliams; Editing by Richard Chang)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 13 2018. 00:14 IST