A 79% return is both astounding and not enough. T. Boone Pickens has seen his energy funds push that much higher this year, but it comes on the heels of 2008, in which his firm, BP Capital, lost more than 90% of its value – plunging from assets under management of more than $4 billion to $500 million. The Energy Equity fund lost 64% of its value, with the Energy Fund off 98%.

The 54% decline in oil prices from last summer – from a record high of $147 – not only pushed Pickens' investments lower but prompted him to exit positions and, in October, lift restrictions on withdrawals by his clients.

T. Boone Pickens does not care if the price of oil is falling. His opinion is that most of the drop is over and that his plan for wind energy is still viable and necessary for future U.S. independence from crude imports.

Pickens could not be described as faint-hearted. Rumors are that his $7 billion BP Capital hedge fund took a 35% haircut in July by betting the wrong way on oil and gas. It is a paper loss, but must sting nonetheless.

Some argue that Pickens is old and monumentally rich so gambles on wind and oil don't mean much for his own fortune. That could indicate that his conviction about wind-powered energy is not based on greed. Since he has spent his life aggressively accumulating wealth, that is not likely.

What is likely is that he thinks oil prices may stay very high and that his alternative energy will do remarkably well because it is infinitely renewable. If so, it is too bad his hedge fund cannot invest a few billions into wind technology. He can't afford another 35% loss. At some point his convictions may put him in the poor house. At least as it would be viewed by a billionaire.

Douglas A. McIntyre is an editor at 247wallst.com