Thursday, 28 August 2014
Last updated 5 hours ago
Feb 21 2008 | 1:00am ET
Toronto-based Front Street Capital is betting the farm, or at least banking on it.
The $3 billion firm, which manages $1.2 billion in long/short strategies, is currently prepping a long/short agriculture hedge fund for launch next month.
Befitting its name, the Front Street Global Agri Fund will invest in agriculturally-oriented equities, including equipment, storage, fertilizers, technology, waste management, food processing and water treatment companies in the U.S., Canada, and Europe, as well as in emerging markets such as Brazil.
The fund is Front Street’s second foray into the agriculture market: It listed through Ceres Global Ag Corp, which makes public and private investments in agricultural concerns, on the Toronto Stock Exchange in November.
The principals of Front Street, who seeded Ceres Global with $20 million, will also seed the Agri Fund with “several” million dollars, according to Tim Cunningham, president of third-party marketing firm Touchstone Group, which is marketing the fund.
“Right now, they’re seeing a run-up in commodities pricing that are pushing all sorts of ag sectors from water and water treatment to equipment, storage, transportation, and all of the underlying infrastructure investments that’s being made to respond to the price moves,” said Cunningham. “It’s really driven by the Chinese and Indian increasing consumption of protein and moving from less expensive forms of protein to fish, poultry, pork and beef.”
The Agri Fund charges a 2% management fee and a 20% incentive fee but the minimum investment requirement has not yet been hammered out.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...