Geologist To Launch Natural Resources Hedge Fund

Apr 23 2007 | 11:22am ET

Geologist Mike Keenan is mining his experience in natural resources in his newest role: that of hedge fund manager. Next month, Keenan will launch his maiden hedge fund, the Stowe Georesource Fund, a multi-directional natural resource-focused equity vehicle. The fund is set to launch with $1 million in partner capital and is working with a marketing agent to secure another $20 million to $25 million shortly after launch, according to Keenan.

Keenan, a consulting geologist with expertise in the natural resources space, founded Sacramento, Calif.-based Stowe Partners last year to provide consulting services to fund managers. Now, he is looking to leverage that experience and take the plunge into the hedge fund business himself, tapping investors with an appetite for commodities-related products. “We focus on gold, silver, uranium, water and petroleum, but do not trade the commodities per se, and are not registered with the CFTC, but generally use exchange-traded funds and stocks and their options traded on U.S. exchanges,” he said.

“The fund generally also holds U.S. government bonds and interest-paying cash instruments as a hedge and to provide income for option premiums” Keenan added. “ To enhance returns and provide additional hedging, it generally holds options in the natural resource sector.”

The Georesource Fund charges a 2% management fee and 20% performance fee, with a $250,000 minimum investment requirement.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note