Thursday, 24 July 2014
Last updated 15 hours ago
May 29 2009 | 11:57am ET
Fresh from buying its first hedge fund, Commoditrade Inc. is planning to launch a second.
The Cayman Islands-based firm will offer an energy hedge fund in the fourth quarter, Bloomberg News reports. It is not alone in rushing to the space, which is recovering from one of its worth-ever slumps: Galena Asset Management launched an energy hedge fund this month, while former Vitol Group trader Andrew Serotta plans a $100 million oil fund.
Commoditrade’s fund will employ the relative-value strategy used by the AMCO Commodity Fund, the $70 million industrial metals hedge fund the firm bought in February.
“Energy is the largest commodity market, with a significant number of products that suit a relative-value strategy,” Commoditrade CEO David Phipps told Bloomberg. “It has good overlap with other markets—for example, with biofuels and sugar.”
Commoditrade has added traders Kristofer Tremaine, formerly of Hess Energy Trading, and Chetan Shah, formerly of Credit Suisse, to manage the new fund. Eventually, they will be joined by other traders that Commoditrade plans to hire for the fund.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…