Last year was a brutal one for commodities—and commodities hedge funds, which saw big declines and a large number of casualties in 2013. RK Capital Management had a significantly different 12 months.
The London-based firm's physical metals fund soared more than 40% last year, The Telegraph reports. Two of the firm's other Red Kite hedge funds returns about 15% apiece.
The gains give RK three straight years of double-digit returns.
RK founder Michael Farmer told the Telegraph that he did not share the "general disillusionment" with commodities.
"The base metals markets are fundamentally underinvested," he said. "There has been a focus on equities, Treasuries, bonds and other markets and a general withdrawal from commodity funds in the past couple of years."
Farmer added that he expects a commodities surplus this year, but "from 2016 onwards deficits can be expected."