Wisconsin-based Capital Innovations’ Global Agribusiness Strategy added 17.44% in the first half of 2012, bringing its gains since inception (in August 2010) to 88.04%.
The strategy, run by CI founders Michael Underhill and Susan Dambekaln, invests in stocks of companies involved in all aspects of the food chain, including land and plantations, seeds and fertilizers, planting and harvesting equipment, bio fuels and more.
The underlying thesis for the strategy is that the world’s population (and its demand for agricultural products) is growing even as the amount of arable land declines. That means “enormous potential” for the global agriculture business, according to CI.
Underhill told FINalternatives he expects the strategy to have assets of $125 million by the end of July.
CI also runs strategies focused on infrastructure and timber, as well as an inflation sensitive strategy.