Sunday, 26 June 2016
Last updated 1 day ago
Jun 6 2008 | 2:00am ET
Hedge fund Juno Mother Earth Asset Management is readying its third commodities fund. The firm is launching the JME Equities Strategies Fund, an equities long/short strategy, in July.
Equities Strategies will invest in the equities of commodities companies across the commodities space. Alex Gorski, portfolio manager, said he is bullish on derivatives in the agriculture space, with Monsanto Co. being one of the fund’s key holdings.
“Yield-improving technologies are going to be at the forefront of the next major innovation in agriculture,” he said.
Gorski also likes some of the specialty chemical names in the fertilizer area, and marine transportation equities because of a major supply constraint of oil tankers and dry bulk shipping vessels.
“There’s huge demand coming out of Asia for iron ore, grains, and chemicals,” he said.
He is also bullish on the wind alternative energy subsector because of its rise in popularity in Europe and the U.S., and the fact that most of the key players in that space are highly profitable. On the short side, Gorski is a bit skeptical on the solar energy space, “because its visibility as a viable power source is not so visible at all.”
All told, the fund currently holds 35 positions with a net exposure of 50% and a 110% gross exposure.
Equities Strategies charges a 2% management fee and a 20% performance fee. Its minimum investment requirement is $250,000 for individuals, $1 million for institutional investors and $5 million for managed accounts.
Juno currently manages the JME Commodities Strategies Fund, a pure commodities product and JME Resources Fund, a hybrid product largely invested in commodity futures and in commodity-related equities
The firm was founded in 2006 and currently manages $56 million in total assets.