e360 Power shutters flagship fund, shifts to lower-risk trading

Austin-based energy hedge fund manager e360 Power closed its flagship e360 Power Fund, LP in December 2025 after losses and investor redemptions tied to volatility in U.S. natural gas and power markets.

Assets in the pooled vehicle fell from about $400 million in mid-2024 to under $100 million by the time of the closure, and remaining capital is being managed through separately managed accounts, according to people familiar with the situation.

People familiar with the situation cited performance losses and investor withdrawals that left the fund too small to justify ongoing operating costs as the reasons for winding down the pooled vehicle.

Market turbulence, including sharp price moves following tariff announcements in April 2025, hurt the fund’s performance and prompted withdrawals.

e360 continues to trade actively with a team of fewer than 10 employees and has shifted to a lower-volatility trading strategy focused on steadier returns. After raising fresh capital early in 2026, the firm reported gains of roughly 8% to 10% during the first five months of 2026 under the new approach.

The closure marks the second time in less than a decade that e360 has wound down a flagship product. The firm posted returns of 188% in 2021 and 97% in 2022 before market conditions reversed those gains.

e360 declined to comment.