8-K: United States Gasoline Fund Reports $9.35 Million Net Loss in May Amidst Trading Losses

The United States Gasoline Fund, LP reported a net loss of $9.35 million for May 2024, primarily driven by realized trading losses on commodity futures.

Summary

• The United States Gasoline Fund, LP released its monthly account statement for May 2024, revealing a net loss of $9,352,274.
• This loss was primarily due to a realized trading loss of $10,382,186 on commodity futures.
• The fund experienced an unrealized gain of $728,771 on the market value of commodity futures, which partially offset the realized losses.
• Other income sources included $157,099 in dividend income and $211,301 in interest income.
• Total expenses for the month amounted to $69,359, including management fees, professional fees, and brokerage commissions.
• The fund's net asset value decreased from $124,795,853 at the beginning of May to $64,674,080 at the end of the month.
• This decrease was also impacted by withdrawals of $50,769,499 related to 750,000 shares.
• The net asset value per share at the end of May was $64.67, based on 1,000,000 shares.

Sentiment

Score: 3

Explanation: The document reveals a significant net loss and a substantial decrease in net asset value, indicating a negative performance for the month. The sentiment is therefore negative.

Positives

• The fund generated $157,099 in dividend income and $211,301 in interest income.
• The fund had an unrealized gain of $728,771 on the market value of commodity futures.

Negatives

• The fund experienced a significant net loss of $9,352,274 for the month.
• Realized trading losses on commodity futures were substantial at $10,382,186.
• The fund's net asset value decreased significantly by $60,121,773 during the month.

Risks

• The fund is exposed to the volatility of commodity futures markets, which can lead to significant trading losses.
• Withdrawals by investors can further reduce the fund's net asset value.
• The fund's performance is heavily reliant on its ability to generate positive returns from commodity futures trading.

Management Comments

• Stuart P. Crumbaugh, Chief Financial Officer of United States Commodity Funds LLC, stated that the information in the account statement is accurate and complete to the best of his knowledge and belief.

Industry Context

The performance of the United States Gasoline Fund is directly tied to the volatility of the gasoline and broader commodity futures markets. The reported losses reflect the inherent risks associated with trading in these markets. Other commodity funds may have experienced similar volatility during this period.

Comparison to Industry Standards

• It is difficult to make a direct comparison without knowing the specific strategies and holdings of other gasoline or commodity funds.
• However, the significant trading losses and net asset value decrease suggest that the fund's performance was likely below average compared to similar funds that may have had more successful trading strategies or less exposure to volatile markets.
• Funds like the Invesco DB Commodity Index Tracking Fund (DBC) or the United States Oil Fund (USO) are comparable in that they track commodity prices, but their specific performance will vary based on their holdings and strategies.

Stakeholder Impact

• Shareholders will experience a significant decrease in the value of their investment due to the net loss and withdrawals.
• The fund's performance may impact investor confidence and future investment decisions.
• The fund's management will need to address the trading losses and implement strategies to improve future performance.

Key Dates

Keywords

Gasoline Fund, Commodity Futures, Net Asset Value, Trading Loss, Monthly Account Statement, Financial Report, UGA, USCF