Despite suffering its first monthly loss of 2011 in September, Duet Group's year-old Commodities Fund is sitting pretty.
The US$100 million fund largely escaped the summer bloodbath that victimized many prominent commodities hedge funds. Indeed, while its peers were losing ground in June, July and August, Duet Commodities was adding to its already-impressive early year gains.
And despite falling 3.8% in September, the fund remains up 28% on the year, not far off its 33% peak for the year.
"Our mantra is, nothing moves in a straight line," chief investment officer Tony Hall told Financial News. "We are not afraid of going short and we like volatility; we see movement as an opportunity to trade."
Hall said the fund will likely soft-close early next year, when it reaches US$500 million in assets. "We want to stop for a breather and concentrate on the portfolio," he said.