Newly-formed hedge fund Hinde Capital has launched the Hinde Gold Fund, focusing on the precious metal. The U.K.-based fund will primarily invest in the physical commodity and securities of companies that explore, mine, produce or process gold through a combination of long- and short-term investments.
The fund employs a macro environment analysis to determine the asset allocation between bullion and equity, a fundamental and model approach for stock selection and then a final technical and sentiment model is employed to “further refine allocations and entry and exit points for each trade,” according to a prime brokerage document. “The fund employs plain vanilla derivative strategies to enhance performance by mitigating and smoothing out risk volatilities on both bullion and equity portions of the portfolio.”
The Hinde Gold Fund charges a management fee of 1.5% and a performance fee of 20% of net gains subject to high water mark, calculated and paid quarterly. Its prime broker is Fimat.
Ben Davies, CEO, and Mark Mahaffey, CFO, are the joint portfolio managers of the fund. Prior to starting Hinde, Davies ran the trading at RBS Greenwich Capital and Mahaffey served as managing director of Bank of America London.