Ospraie Raises $100 Million For New Hedge Funds

Jul 6 2009 | 12:53pm ET

Ospraie Management, which shuttered its flagship hedge fund last year following huge losses, is back with a pair of new hedge funds.

The New York-based commodities hedge fund shop launched the two funds this month with a combined $100 million, Bloomberg News reports. Despite the fact that Ospraie was forced to close its Ospraie Fund, once the largest commodities hedge fund in the world, in September after a 39% loss, it took the firm just two months to raise the money.

Firm founder Dwight Anderson called available investment opportunities “as compelling as I have seen in my 15-plus years of investing.” To capitalize on those opportunities, his firm launched the Ospraie Equity Fund and Commodity Fund on July 1. The former invests in the stocks of commodity producers and companies, while the latter invests directly in commodities and associated derivatives.

Ospraie Fund clients have gotten about 80% of their money back, with the rest still tied up in illiquid investments. The firm has offered investors in its former flagship steep fee discounts—either no performance fees at all until last year’s losses are made up, or a 1% management fee and 10% performance fee for the life of their investment—if they invest in the new funds. And unlike the Ospraie Fund, the new funds do not impose a long lock-up period on investors, instead offering quarterly liquidity.


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