Co-founded by Dwight Anderson in 2004, Ospraie Management made its way into the history books this month following the announcement of shockingly large losses. The hedge funds’ flagship product lost $1.3 billion dollars, or 39%, this year with most of that sum occurring in July and August as commodities crashed.

On Monday, Ospraie announced it would close the Fund. The group still manages another $4 billion in assets, though I suspect a good chunk of that capital will find its way out the door as nervous money flees.

In July, hedge funds suffered their worst month in six years, dropping 2.3%, according to Hedge Fund Research. Big directional shifts in commodities, stocks and currencies sideswiped fund managers. Estimates for August also show another month of losses.

Anderson, a Tiger Management alumni, logged some pretty impressive returns over the last four years. Julian Robertson, founder of Tiger Management in 1980, is regarded as one of the top global macro hedge fund managers of his time until his retirement earlier this decade. Anderson left Tiger to start Ospraie.

The long/short Ospraie hedge fund suffered big losses riding commodities right to the point of maximum exuberance in July as prices peaked on July 15. Oil, base metals, precious metals and agricultural commodities have all crashed at least 20% or more over the last eight weeks of trading. Other hedge funds are also reported to be in trouble this month as positions continue to be unwound in natural resource equities.

Until July’s crash, commodities had supported the performance of many hedge funds in the global macro sector. The big trade over the last 12 months was shorting financials and buying energy stocks; this trade ended badly starting in mid-July and continues to bleed into September with oil and gas stocks still getting pounded. Since peaking on July 11, crude oil prices have tanked 25%.