Red Kite Metals Fund Up Over 40%

Jan 2 2014 | 1:23pm ET

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."


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...