Clive Capital, the world’s largest commodities hedge fund and reportedly co-founder of a new index with Goldman Sachs, paid one of its partners £83.9m over 11 months during the past financial year, amid a commodities boom that has seen some prices reach record highs.
According to Companies House filings issued on Thursday, Clive Capital founder Christian Levett, along with fellow members of the partnership Richard Boland and Elizabeth Holstein, withdrew a total of £104.4m in remuneration from March 31 2010 to February 28 2011.
The partner with the largest share of the profits netted £83.9m, up from £74.6 in 2010. The specific individual is not identified. Clive Capital declined to comment.
The S&P Goldman Sachs commodity index gained 30.31% over the same period. By the end of December, gold had reached an all-time high, and silver hit a 30-year high.
London-based Clive Capital, with $4.6bn at June 1 according to an investor, was founded in 2007 by Levett, who previously traded at Moore Capital, managed by Louis Bacon. Levett is also the controlling party at Clive Capital. The fund had $5.1bn under management at May 1, Bloomberg reports, citing a document sent to investors.
The $4.1bn flagship Clive Fund, managed by Levett and Boland, returned 22.54% since inception in November 2007 to May 20 this year, according to research from HSBC Alternative Investment Group.
However, the fund has suffered a volatile few months since February, losing 3.38% in the year to May 20, with the majority of the losses coming in May. The fund lost 11.01% from the beginning of May up to May 20, according to HSBC data.
The losses were predominately caused by investments in crude oil, according to a letter seen by the Financial Times. During the first week of May crude oil fell 7% after weak economic data from the US and Europe.
Clive Capital trades across a wide variety of commodities. According to a letter sent to investors last October, the fund expressed views on oil, gas, copper, tin and lead, nickel and zinc. The letter said the fund was up 10% year to date for the year to last October.
In 2009 the Clive fund closed to new investment, as Levett aimed to remain nimble in more esoteric commodity markets such as heating oil.
Although based in London’s Mayfair, Clive Capital is also one of a few large hedge funds domiciled in Malta, along with $2.4bn Duet Asset Management, $1.63bn Finisterre Capital, and long/short equities hedge fund, Belay Partners. Hedge funds may trade in financial centres such as London and New York, but are often legally registered in countries such as Malta, Ireland and the Cayman Islands due to the more relaxed regulatory and taxation rulings.
Phil Chapple, executive director at hedge fund consultant KB Associates, said: “Malta is often seen as a cheaper option to achieve an onshore setup, often with the end objective of conforming with upcoming regulation”
Clive Capital is reported to be launching an active commodity index in partnership with Goldman Sachs, according to the Financial Times. The index will vary its exposure to different commodities over time.