Front Street Preps Agriculture Hedge Fund

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.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.