New York – PointState Capital manager Zach Schreiber’s prediction at the May 2014 Ira Sohn Investment Conference that oil prices would fall drastically resulted in a hefty payout for the investment firm – $2 billion, with nearly half of that just from oil trade.
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Bloomberg (http://bloom.bg/1CPZ9DQ) reports Schreiber, 42, spoke at Avery Fisher Hall at the conference that day, little was known about him.
PointState was founded in January 2011 by Schreiber along with Josh Samuelson, Kenan Turnacioglu and Jack Franke. Betting on and against stocks and wagering on macroeconomic events globally, PointState started with 1 billion from the closing of Stan Druckenmiller’s Duquesne Capital Management, where the group used to work until 2010. Approximately 4 billion came from other investors.
Schreiber predicted the dive in prices after speculating that Russia’s annexation of Crimea would constrain shipments. Oil prices dropped more than 50 percent through the end of 2014 as supplies piled up, helping PointState Capital make about 27 percent for the year.
PointState has been one of the biggest winners from the drastic drop in oil. The investment firm started in 2014 with about $5.8 billion in assets, which grew as the U.S. energy industry increased production and Saudi Arabia and other OPEC nations chose not to cut supply.
Information taken from Bloomberg
How does one bet against oil