Tuesday, 30 September 2014
Last updated 47 min ago
Jan 20 2010 | 9:58am ET
Lumix Capital AG is gearing up to launch an agricultural hedge fund later this quarter.
The Lumix AgroDirect Fund, which has been incubated since June 2008, invests in the production of soft commodities and in commodity trade finance in Uruguay, Argentina, Brazil and Paraguay. The managers of the fund aim to capture the spread between the price of commodities and the cost of farming inputs by investing in the production of soybeans, wheat, and corn in leased farmland where production is outsourced to local farmers.
The fund is hedging its weather risks through regional and crop diversification and through specialty insurance products. It is also opportunistically investing in agriculture-related securities and other special opportunities.
“Farming is very volatile when you talk about one plot of land,” Gonzalo Fernandez Castro, Lumix’s managing partner, told FINalternatives. “If you have 1,000 plots of land in different areas, the volatility is very much reduced.”
The firm has already raised US$20 million of capital from its partners and seed investors, and it is targeting a $100 million close for its maiden offering.
Castro, a former investment manager at Jacobs Holdings AG, a family office in Switzerland, is looking to tap the region’s family office space for capital as well as other funds investing in the space.
The AgroDirect Fund charges a 2% management fee and a 20% incentive fee.
The firm also has a farmland conversion fund and other credit strategies in the works for launch at a later date.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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