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March 22, 2017  

Energy Strategist Longson Joins Fund Shop

Energy investor Madava Asset Management has picked up Morgan Stanley’s top oil analyst.

Adam Longson, who oversaw energy commodity research for the investment bank and frequently appears on CNBC, joined the Greenwich, Conn. fund operator this month in a senior research role. Beau Taylor and Robb Turner co-head Madava, formerly known as Taylor Woods Capital.

Longson is coming on board following a difficult period for the New York firm, which launched in 2011 with a $150 million seed investment from Blackstone. After booking big profits shorting oil during the market rout in 2014 and 2015, Taylor and his then-partner, Trevor Woods, failed to capture last year’s rally in oil prices. The Taylor Woods Fund lost 14% in 2016.

Earlier this year, Taylor notified investors that Woods was leaving the firm, and that Turner would join him as co-managing member. As part of the ownership change, Taylor and Turner renamed the business.

Turner has a private equity background, having co-founded energy-infrastructure specialist ArcLight Capital. He left last year as the Boston firm sold minority interests to several investors, including Goldman Sachs’ Petershill program, which buys stakes in established alternative-investment businesses.

It’s unclear how much money Madava is running in its Madava Energy Commodity Fund. Taylor Woods had about $800 million under management at yearend 2016, according to Bloomberg.

Longson spent 12 years at Morgan Stanley, preceded by a stint as an analyst at oil giant BP. He is on record with a forecast that supply and demand in the oil market will rebalance sometime around mid-2017. But he has warned that investors may have to be patient.

“An oil recovery has been 6-12 months away in the minds of investors since late 2014, but ‘unforeseen’ events have led to consistent delays,” Longson wrote. “Once again, we see an increasing probability for several bearish developments to come together, which could push off rebalancing to late 2017 or 2018.”

Before launching a hedge fund, Taylor was a top commodity trader at Credit Suisse, where he worked with Woods.

CORRECTION (3/29/17) This article has been revised. The original version gave an incorrect location for Madava Asset Management of Greenwich, Conn. And there’s no plan for Madava’s newly hired head of commodities research, Adam Longson, to play an active role in marketing.