BooneDonna Kardos reports:
In the latest sign of how the financial crisis and steep drop in commodity prices since July have blindsided some of the most prominent investors, energy crusader T. Boone Pickens said he and his BP Capital investment firm have lost some $2 billion since oil and natural-gas prices started tumbling in July.

The information, released on “60 Minutes,” is sharply higher than the most recent estimates of Mr. Pickens’ losses. His funds were previously thought to be down over $1 billion in 2008, with his personal losses pegged at more than $300 million.

In the “60 Minutes” profile, which says the value of Mr. Pickens’ hedge fund has been cut in half since July, Mr. Pickens said he’ll get the $2 billion back.

Along with Kirk Kerkorian and Carl Icahn, Mr. Pickens returned to prominence during the past few years by employing tried-and-true investing tactics. But market upheaval is throwing the prominent graybeards for a loop, a sign the playbooks of even top investors need a thorough updating.

Mr. Pickens, who is 80 and earned his spurs in the oil patch, has been an energy believer for years, arguing that global demand would outpace supply. It’s worked, at least until this year. Mr. Pickens has acknowledged that a deep recession would cripple his bullish positions. That’s what the market now is forecasting. Lately, he’s moved his equity fund into cash.