Four Elements Capital, the nascent Singapore-based hedge fund shop, has launched its maiden hedge fund with $8 million.
The firm, founded in November by a quintet of commodities experts from JPMorgan Chase and BNP Paribas, soft launched its Earth Element Fund last month as scheduled. The fund will invest in commodity futures, including energy, agriculture, precious metals and base metals across eight or nine exchanges around the world, according to Asian Investor. Lionel Semonin, formerly of BNP’s global commodity investor group and the chief investment officer of the new fund, will employ both fundamental and quantitative analysis to scrutinize exchange-traded futures. The fund can use leverage up to 200% of notional contract exposure.
In addition to Semonin, JPMorgan veterans Bertrand Egsbaek and Leila Kuhlemthal and Marion Lefevre, formerly of BNP will work on the new offering. Egsbaek handles execution and risk management, Kuhlenthal investor relations and compliance, and Lefevre research.
Earth Element charges 2% for management and 20% for performance, with a $500 million capacity. It boasts monthly liquidity and no lock-up period.