By Saijel Kishan
Jan. 8 (Bloomberg) -- Carbon Trading Fund Ltd., a London- based hedge fund, shut down because of lack of money less than two years after it was started.
Cash in the fund, which was introduced in June 2006 and managed by David Bates, was returned to investors at the end of last year, according to Sam Morse, marketing associate at PCE Investors Ltd., which provided administrative support.
``The fund didn't attain the targeted assets,'' Morse said in a telephone interview today. He declined to say how much was invested.
The fund had planned to raise as much as 125 million euros ($184 million) to trade European Union carbon-dioxide emission- allowance contracts and alternative-energy stocks, Bates said in a May 2006 interview. He said he sought to return more than 25 percent annually.
Bates couldn't immediately be reached on his mobile phone. He was a director at Dresdner Kleinwort Wasserstein in 2000 and 2001 and was an investment manager at the Kuwait Investment Office from 1984 to 1987, according to the fund's proposal document.
EU carbon dioxide permits for December 2008 have risen 64 percent in the past year to 23.75 euros a metric ton, according to prices from the European Climate Exchange in London.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets and participate substantially in profits from money invested.
To contact the reporter on this story: Saijel Kishan in London at skishan@bloomberg.net
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