A Cargill-owned hedge fund is opening its long/short commodity equities fund to outside investors, hoping to raise almost $200 million.
Black River Asset Management is marketing its Commodity Equity Long/Short Opportunity Fund to institutional investors around the world. The fund, which debuted in September, seeded with $60 million, invests in stocks in the commodity chains that Cargill is found, HFMWeek reports. Among the sectors it focuses on are fertilizers, food distribution, energy, grains, meat, steel and transportation.
The fund charges 2% for management and 20% for performance and features a $1 million minimum investment requirement. It offers quarterly liquidity with 60 days’ notice. The fund has a capacity of $250 million.
Gregg Groechel, head of Black River’s long/short equity business for five years, is the manager of the fund.