Saturday, 20 December 2014
Last updated 1 day ago
Feb 2 2009 | 1:55am ET
In the wake of a brutal year for commodities hedge funds, another new offering is betting that better times must be ahead.
Baobab Asset Management plans to launch its Natural Resources Fund on March 1, Bloomberg News reports. Firm founder Russell Fryer, the former head of natural resources at Greenwich, Conn.-based hedge fund shop North Sound Capital, hopes to raise $500 million for the new vehicle. The fund will trade exchange-traded commodities, derivatives and equities of natural resource companies.
“I’m bullish on commodities,” Fryer, who left North Sound in December, told Bloomberg. The fund will focus on metals, oil and agriculture. In particular, Fryer said he is looking a mineral sands producers.
Commodity hedge funds took a beating last year, with half of their assets disappearing in between September and October. Commodities themselves suffered a historically bad year, with the Bloomberg Europe Metals & Mining Index falling 67%.
But the downtrodden state of the market is buoying new entrants to the market. A trio of AllianceBernstein veterans founded an energy-focused hedge fund, TS World Development Fund, in December, as did the new Singapore hedge fund shop, Four Elements Capital. Alternative investments giant Apollo Management last month announced its own plans for a suite of commodity-focused offerings, including a $500 million metals hedge fund.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.