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.