Abraham Trading Company has launched a long-short commodities-only fund that will trade 34 commodities futures markets.
“There has been a trend in the industry to create funds of funds that have commodity-only exposure,” says Shaun Jordan, director of marketing at the Canadian, Texas-based firm.
The Abraham Commodity Fund, which launched on Oct. 1, has a $100 million capacity and will have exposure to five categories of commodities: grains, metals, energy, meat, and food and fiber.
“We will trade anything if it is liquid, especially if it is non-correlated,” he said, “that’s our philosophy.”
The 12-member firm was founded in 1988, by portfolio manager Salem Abraham and currently has $140 million in assets under management in its Diversified Program, which is actively managed and trades both long and short.
According to Jordan, Abraham’s track record speaks for itself. The Diversified fund has averaged returns in excess of 20% on an annualized basis, with only two down years in its18-year history.
The new offering is an offshore vehicle and charges fees of 2% for management and 20% for performance. The minimum investment is $1 million and there is no lockup.