Thursday, 23 February 2017
Last updated 10 hours ago
Nov 10 2006 | 1:34pm ET
Canada’s Sextant Capital Management this week launched a pair of offshore hedge funds aimed at U.S. and European investors.
The new Sextant Hybrid²Hedge Resource Fund Offshore, according to Sextant CEO Otto Spork, will follow the same strategy as its flagship Canadian onshore fund, Sextant Strategic Opportunities Hedge Fund. That fund, which has returned more than 92% year-to-date as of the end of October, invests primarily in “off-the-radar-screen” exotic and industrial metals.
“For the offshore fund,” Spork said, “we’re using those metals as well as the energy complex, natural gas, coal, that kind of thing.” The fund will hedge its long commodity exposure—acquired primarily through private placements—using exchange-traded funds, options and futures.
“We just feel that equity is really, as a short proxy, very ineffective and very inefficient,” he said.
The Hybrid²Hedge fund and Sextant Strategic Global Water Fund Offshore will remain open for a month or two, “depending on the interest.” After the initial subscription period, the funds will close and the firm will begin investing the capital. Earlier this week before the official fund launch, Spork said he expected to start the new fund with between $20 million and $50 million.
“We’ve had a fair amount of interest,” he said. “Our strategy can handle quite a lot of money.”
Separately, Sextant has brought on the scion of a prominent family in the Canadian securities industry, Peter Deacon, as vice president of business development. Deacon has worked both in Canada and Europe for firms such as Dundee Securities and RBC Dominion Securities. In his new role, he will focus on building relationships with clients old and new.
“We’re expanding the firm’s capabilities, and he was an interesting find, so to speak,” Spork said of his new v.p. “We’re really looking to ramp up the assets in all the funds.”