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

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note