Haar Capital, AV Asset Launch Commodity Fund

Feb 26 2007 | 10:26am ET

Haar Capital Management, a Boca Raton, Fla.-based CTA, this month teamed up with Venezuela’s AV Asset Management, to launch the AV Commodity Fund with $5 million in initial equity. Haar serves as the investment advisor for the new British Virgin Islands-domiciled vehicle.

“They’ve been a client of ours since our start, and they’ve launched this fund for their retail clients,” explained Ari Beim, vice president of Haar Capital.

The AV Commodity Fund follows the same trading parameters as the Haar Discretionary Commodity Trading Program, which trades a range of listed commodity derivatives using a completely discretionary approach. Trades can be outright long and short positions, as well as inter- and intra-market spreads and options.

The new AV fund charges a 1.5% management fee and 25% performance fee, with a $50,000 minimum investment requirement.

Investors in the new fund will be well-served if last year was any indication: The Discretionary Commodity program, which began trading in January 2006, finished its first full year up 27.39%. It is currently managing $24 million in assets.

“Where we made significant returns were in the corn and coffee sectors, but as January began most of the commodities sold off and moved against some of our positions,” Beim said.  The program finished January down 0.77%, but has rebounded this month, up an estimated 7%, according to Beim.

Going forward, Beim said that Haar is looking to structure its program into a fund format and launch an onshore vehicle sometime in the third quarter. He declined to give further specifics about the fund.

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