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.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...