Thursday, 29 January 2015
Last updated 2 hours 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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…