Oil’s big rebound in the first half of the year was a squandered opportunity for most hedge funds with positions in crude, and a surge in volatility is likely to make it harder for them to call the market in the second half. The majority of hedge funds in the oil universe posted sparse returns in the six months to June even as crude rebounded from 12-year lows to post a 30 percent gain. Rather than extend risk through more bets on oil, some fund managers are cutting exposure to prevent further losses as volatility rises again on concerns about supply and economic demand. “It’s far less clear a position than it was a year ago when the oil market had been clearly trending downwards,” said Chris Reeve, director of […]