Baker Steel Digs Deep With New Mining Hedge Fund

Mar 6 2007 | 2:15pm ET

U.K.-based Baker Steel Capital Managers on March 1 launched the Genus Dynamic Mining Fund, a long-biased commodities fund with over US$40 million in initial equity.

“Basically, the strategy is predominantly long with the ability to go up to 20% short, but it is not expected that we’ll use that actively,” Kristy Barr, director of marketing, told FINalternatives.

The fund has exposure to companies producing base metals, precious metals, bulk commodities, coals, industrial minerals and uranium, as well as diversified mining companies.

When the fund does put on short positions, it will do so to hedge out its exposure, “so we might do pairs trading, short the commodities or indices,” Barr added.

The new offering charges a management fee of 1.5% and a 10% incentive fee on outperformance, benchmarked against the HSBC Global Mining Index. There is a minimum investment requirement of US$100,000 or €100,000.
 
Baker Steel currently manages in excess of US$600 million in long-only precious metals and long/short natural resources and energy funds. David Baker and Trevor Steel, former portfolio managers with the Blackstone Group’s natural resources team, established the firm in 2001.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...