NEW YORK/LONDON (Reuters) - Jamison Capital Partners LP, a New York-based macro commodity hedge fund run by former Morgan Stanley (NYSE:MS) trader Stephen Jamison, will shut its nearly $1.5 billion fund by the end of the month, according to a source familiar and an investor letter.
The firm is shutting its Koppenberg Macro Commodity Fund by Jan. 31, according to the letter reviewed by Reuters. The firm will convert into a family office, the source said.
"Commodity trading is tough, with no coupons, dividends, or real price appreciation over time to soften the blows. It's becoming even tougher," Stephen Jamison said in a Jan. 24 letter to investors.
The closure of Jamison, one of the largest commodity-focused hedge funds, comes after several other big names have closed shop in recent months. They include hedge fund manager Andy Hall, who closed his Astenbeck Capital Management last summer, and Texas tycoon T. Boone Pickens, who said this month that he was closing his fund, in part due to declining health.
A spokesperson for Jamison did not respond to requests for comment.
In his letter, Jamison said machine learning and artificial intelligence has eliminated short-term trading opportunities for the firm, and long term, commodities do not offer any obvious benefits.
He added that there are wiser places to invest such as master limited partnership (MLP) firms and bitcoin, which he called "digital gold."
Jamison was down 9 percent last year, according to two other sources familiar with the fund's returns, driven in part by some losses on natural gas in the second half of the year.
Macro commodity hedge funds returned an average of 0.01 percent in 2017, making it one of the worst-performing strategies last year, according to data from industry tracker Hedge Fund Research.
Commodity trading firms and banks posted major losses in 2017 due to muted client activity and wild fluctuations across energy markets. A number of firms were said to have suffered heavy losses in the first half of the year after the
TY It's not that the charts don't work IMHO, depending on the time frame you are using depends on how often you have to look at the chart. 5 minute chart requires a lot of attention AND requires that you trade the 5 minute chart.
Most of my problem is when I think what the price will do instead of just trade the chart and take the odds of them winning vs losing. Not all patterns win all the time.
I admit that trading with charts takes a strong discipline to trade the chart and don't trade what "you" think. Yes that would be trade without emotions as we have probably all heard of. LOL
This was a trade taken on the 5 minute chart based on the fractals and the RSI. So when the RSI failed to stay above it's trend line I should have exited the trade no questions asked.
Then there is the fact that there are a lot of patterns out there that if one is going to trade patterns, it does take a lot of time to study them. Again I will add that while in the process of learning them, it may not be the best idea to start trading with real money just yet. LOL again.
Yes, posting charts after the fact doesn't help in the here and now, but they are there and if one has the patience and time to look for them they can be traded. Catching patterns in real time is an art form in and of itself no doubt.
Patterns hold to the exact rules of entry and stop loss on all time frames. Time frames under 60 minutes do require sitting in front of the computer most of the time, I understand that some people don't like that.
There is no doubt that NG is in a bull trend so with that in mind trading DGAZ should be taken as a counter trend trade and scalping should be the sensible way to trade it for now. Again a rule that I neglected on my last trade. No fault of the charts.
News 
Market Data 
Discover 
AI
