Phoenix Firm Launches Carbon-Trading Hedge Fund

Aug 14 2008 | 9:35am ET

Phoenix, Ariz.-based Gressel Advisors is jumping into the cleantech fray with the launch of its Universal Carbon Fund.

However, pastures are not so green for the four-month old, $5.6 million hedge fund. The vehicle has dropped 30.55% through July.

The fund employs a long-biased, directional strategy based on the belief that demand for more stringent greenhouse gas emission regulations may lead to the creation of a mandatory “cap and trade” emissions regime in the U.S., according to fund documents.

It deploys a number of specific trading strategies and programs such as directional, relative value, cash/future spread/arbitrage, calendar spreads/arbitrage, option spread/arbitrage, volatility spreads/arbitrages, cash/delivery spreads and statistical arbitrage.

The fund is managed by Joseph Gressel, CEO of Gressel Advisors. Previously, Gressel was a member of the Chicago Mercantile Exchange as a floor broker and market maker. Gressel currently acts as a liquidity provider for the Chicago Climate Exchange, where he has traded since 2005.

The Universal Carbon Fund charges a 2% management fee and a 20% incentive fee and has a $250,000 minimum investment requirement.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of