Tue May 4, By Laura MacInnis and Robin Bleeker
GENEVA, May 4 (Reuters) - Geneva is seeking to transform itself into a hub for Chinese banking and commerce, building on its new strength in commodity trading and hedge funds, officials from the city's economic promotion division said on Tuesday.
The officials told a news conference they were in discussions with "a certain number" of Chinese companies interested in setting up in the city, which is already home to two Bank of China (601988.SS) subsidiaries.
"There are many Chinese delegations that are coming to visit," said Daniel Loeffler, director of the economic promotion division.
He declined to name the companies from China that were interested in a Swiss base, but said that talks with some of them have been underway for some time.
"The process is relatively long," he said. "The fruits of this activity should arrive soon."
Geneva has long been the home of secretive, elite banks catering in particular to wealthy Middle Eastern, Russian and Latin American clients.
However in the last five years, low tax rates and other incentives have transformed the second-largest Swiss city into a major hub of oil and commodity trading as well as for hedge funds, a number of which have moved from London due to the higher taxes in the United Kingdom.
The Hong Kong-based GMT Shipping Group and Addax Petroleum, which was purchased last year for $7.24 billion by China's Sinopec (600028.SS), are both based in Geneva, along with Bank of China (Suisse) SA and BOC (Suisse) Fund Management.
Switzerland has also sent a large delegation to Shanghai's World Expo, which opened this week. The 4,000 square metre Swiss Pavillion is one of the largest and most expensive on display.
QUIET GROWTH
While Geneva's storied banks were squeezed by the global financial crisis and the crackdown on banking secrecy, its commodity and oil community still thrived, and trading houses and hedge funds continued to move there.
This quiet transformation has helped to diversify the Swiss financial landscape and the city now brokers some 33 percent of global petroleum and sugar trading, 30 percent of grain trading and 22 percent of raw material shipments, according to BNP Paribas figures. [ID:nLDE63Q0WU]
Commodity and energy trading contributes as much as 2.5 percent to Switzerland's gross domestic product, which is more revenue than from foreign tourists visiting the Swiss Alps to ski and hike. [ID:nLDE63R1WV]
Physical commodities traders, including Total's (TOTF.PA) trading arm Totsa, Vitol [VITOLV.UL], LUKOIL-owned (LKOH.MM) Litasco, Louis Dreyfus and Cargill [CARG.UL] all have offices in Geneva and European hedge fund firms Blue Crest and Brevan Howard have also moved to Geneva in recent months.
Switzerland is also home to major oilfield services and offshore drilling companies, including Weatherford (WFT.N), Noble Corp (NE.N) and Transocean Ltd (RIGN.S), which listed on the Swiss SIX stock exchange last month. [ID:nLDE63I0VL] The metals trading giant Glencore [GLEN.UL] is based in Zug, near Zurich
NEWS - Commodites, Agriculture, Green Investment - NEWS
5/26/2010
10 reasons Switzerland is a cleantech leader
Author Name: Shawn Lesser
Switzerland consistently ranks as one of the world's most energy-efficient economies, thanks largely to advances in renewable energy, green buildings, waste management and sustainable transportation. Switzerland was also recently ranked second on the 2010 Environmental Performance Index [1].
Switzerland’s sustainable/cleantech investment market at the end of 2009 was approximately $30 billion. Switzerland also was recently nominated for recognition as Europe's most innovative country in 2009 [2].
Given this strong history, capital base and innovate spirit, I wanted to take a closer look at the driving forces behind the burgeoning Swiss cleantech movement. Below are the top 10 reasons, as I see it, as to why Switzerland has become a powerhouse in this expanding economic sector.
The Swiss are true pioneers in sustainable and cleantech investing. Bank Sarasin [3] led the way in 1989 with the first asset management mandates defined by ecological criteria. Zurich powerhouse Sustainable Asset Management [4] (SAM) created specialized fund more than 10 years ago and has also been at the forefront of sustainable investing.
Switzerland has set itself apart as the financial global hub of cleantech investing. Swiss companies play key leadership roles in multiple sustainable/cleantech financial sectors. Whether investing in public companies with climate mitigation strategies or a private venture with an innovative solar technology, the Swiss have a wide range of investment firms that are international leaders in cleantech. Additionally, Switzerland is now home to a huge pool of cleantech money from financial powerhouses such as Mountain Cleantech [5], SAM [4], Good Energies [6], Emerald Ventures [7], UBS [8], Picet [9], Sarasin [3], Credit Suisse [10], ZKB [11] and Unigestion [12].
The Swiss have a long history of living within their environmental and economic means. I think Nick Beglinger from Swisscleantech [13] said it best: “The Swiss have a culture and lifestyle that emphasizes sustainability in their daily lives.” The Swiss have one of the highest recycling rates in the world—they recycle up to 95 percent of glass and they use 50 percent of the energy per capita compared to the U.S. Recycling, energy efficiency and stewardship are integrated into daily life in Switzerland. Even Mobility Carsharing [14] has its roots in Switzerland.
The Swiss President Doris Leuthard made cleantech one of the top priorities of the country’s economic recovery. Almost one billion Swiss francs of the Swiss government stimulus package are targeted towards energy efficiency, renewable energy and the environment. As a result of such heavy investment and friendly government regulation, Leuthard expects the clean technology sector to continue to grow, reaching a volume of 3 trillion Swiss francs worldwide by 2020, double its current size. “This is growth that no government can ignore,” she said. Leading the charge towards such productivity are Swiss organizations such as Swiss Cleantech, Think Swiss [15], Switzerland Trade and Investment Promotion [16] and the Embassy of Switzerland [17]. This growth spurt is being trumpeted abroad, and was recently highlighted by Swiss-U.S. Cleantech dialogue events in Atlanta, Washington D.C. and New York. Another such event is planned to take place in Zurich.
Today, with a workforce of 160,000 in cleantech—which accounts for 4.5 percent of all employment in the country—Switzerland is a world leader in terms of its innovation potential and research landscape. Switzerland has scored notable successes in the global cleantech arena through multinational manufacturing giants such as ABB [18] and Oerlikon Solar [19]. Other standout companies include Geberit, Schulthess Group, Ernst Schweizer Metallbau, Walter Meier, Hoval, Landis&Gyr, TRITEC and Renggli.
The Swiss Minenergie is one of the world's most advanced green building rating systems. The Minenergie standard is a quality label for new and refurbished homes for low energy consumption buildings. So far, 15,000 Minergie certifications have been distributed compared to 2,000 LEED certifications in the U.S. The Swiss embassy in Washington, D.C., is currently being renovated as a sustainability an Minergie reference project. The goal is to showcase the key Swiss firms that are supplying the key components for the renovation. Other large corporate buildings that are being designed, constructed or renovated to attain Minenergie certification include Coop and Migros, IKEA, Swiss Re and Zurich Cantonal Bank.
The 2000-watt society is a vision—originated by the Swiss Federal Institute of Technology in Zürich at the end of 1998—that seeks to cut energy use in the developed world. Specifically, the goal is that each person in the developed world would cut their overall rate of energy use to an average of no more than 2,000 watts by the year 2050—and this is to be done without lowering their standard of living. While the goal has been met with some skepticism as to its viability, the concept is well supported nationally. Recently, 70 percent of the population in Zurich voted in support of putting the 2000-watt concept into practice.
Swiss get their own neighborhood in Masdar City, Abu Dhabi [20], called the Swiss Village. Nick Beglinger, SVA President said Eco-City is another example of the close ties between the two countries. It also speaks to a shared sustainability vision. “The relationship between Switzerland and Abu Dhabi is excellent,” Beglnger said. “Swiss Village is an important element of that relationship. We now have a concrete link into the Masdar project, and a platform representing Swiss companies of all types and sizes. SVA offers the possibility to generate exports and to secure one of the most attractive company locations in the Gulf. Swiss firms can act as a community, strengthening each other in terms of know-how and joint offerings.”
Switzerland runs on hydroelectric power! Hydroelectric power accounts for about 58 percent of Switzerland's electricity production. Another 10 percent of electric power production comes from recycling programs. As a country, Switzerland does not use fossil fuel for electricity production anymore.
Swiss Innovations. Switzerland is a small country inhabited by only 7.4 million people. The economy is based on the production of individual goods and services of high quality, such as precision instruments, which is an excellent backdrop for a growing Cleantech economy. “One Third of our portfolio companies are located here in Switzerland”, adds Jürgen F. Habichler, Founder and Managing Partner of Zurich based Growth Capital Fund Mountain Cleantech AG, “the Swiss combine entrepreneurial skills with technical expertise”. Other exciting Swiss Cleantech companies include Myclimate [21], Geroco [22], Nolaris [23], Flisom [24], TEXX [25], Flexcell, Airlight Energy [26], EdiSunPower, [27] and Smixin.
Shawn Lesser is the president and founder of Atlanta-based Sustainable World Capital [28] (SWC), which is focused on fund-raising for private equity cleantech/sustainable funds, as well as private cleantech companies and M&A. For information, visit his Web site [29].
Want to author a guest column yourself? We welcome contributions, and would like to hear from you. Guidance and directions here [30].
--------------------------------------------------------------------------------
Source URL: http://cleantech.com/news/5822/10-reasons-switzerland-cleantech-leader
Links:
[1] http://epi.yale.edu/Countries/Switzerland
[2] http://www.proinno-europe.eu/
[3] http://www.sarasin.ch/internet/iech/en/index_iech.htm
[4] http://www.sam-group.com/htmle/main.cfm
[5] http://www.mountain-cleantech.ch/
[6] http://www.goodenergies.com/
[7] http://www.emerald-ventures.com/aboutUs.aspx
[8] http://www.ubs.com/
[9] http://www.pictet.com/
[10] https://www.credit-suisse.com/ch/en/
[11] http://www.zkb.ch/
[12] http://unigestion.com/
[13] http://www.swisscleantech.ch/
[14] http://www.mobility.ch/pages/?dom=6
[15] http://www.thinkswiss.org/events/details/122-Green Job Creation
[16] http://www.osec.ch/internet/osec/en/home/invest/us.html
[17] http://www.eda.admin.ch/eda/en/home/reps/nameri/vusa/wasemb.html
[18] http://www.abb.com/
[19] http://www.oerlikon.com/solar/Oerlikon Solar
[20] http://www.masdar.ae/en/home/index.aspx
[21] http://www.myclimate.org/
[22] http://www.geroco.ch/en/home.html?lang=en
[23] http://www.nolaris.ch/17-0-Our-Technology.html
[24] http://www.flisom.ch/e/index.html
[25] http://www.texx.ch/texx-website/press-release.php
[26] http://www.airlightenergy.com/Default.aspx?AspxAutoDetectCookieSupport=1
[27] http://www.edisunpower.com/de/home-de
[28] http://cleantech.com/news/companies/Sustainable-World-Capital
[29] http://www.sustainableworldcapital.com/
[30] http://cleantech.com/submitnews
Switzerland consistently ranks as one of the world's most energy-efficient economies, thanks largely to advances in renewable energy, green buildings, waste management and sustainable transportation. Switzerland was also recently ranked second on the 2010 Environmental Performance Index [1].
Switzerland’s sustainable/cleantech investment market at the end of 2009 was approximately $30 billion. Switzerland also was recently nominated for recognition as Europe's most innovative country in 2009 [2].
Given this strong history, capital base and innovate spirit, I wanted to take a closer look at the driving forces behind the burgeoning Swiss cleantech movement. Below are the top 10 reasons, as I see it, as to why Switzerland has become a powerhouse in this expanding economic sector.
The Swiss are true pioneers in sustainable and cleantech investing. Bank Sarasin [3] led the way in 1989 with the first asset management mandates defined by ecological criteria. Zurich powerhouse Sustainable Asset Management [4] (SAM) created specialized fund more than 10 years ago and has also been at the forefront of sustainable investing.
Switzerland has set itself apart as the financial global hub of cleantech investing. Swiss companies play key leadership roles in multiple sustainable/cleantech financial sectors. Whether investing in public companies with climate mitigation strategies or a private venture with an innovative solar technology, the Swiss have a wide range of investment firms that are international leaders in cleantech. Additionally, Switzerland is now home to a huge pool of cleantech money from financial powerhouses such as Mountain Cleantech [5], SAM [4], Good Energies [6], Emerald Ventures [7], UBS [8], Picet [9], Sarasin [3], Credit Suisse [10], ZKB [11] and Unigestion [12].
The Swiss have a long history of living within their environmental and economic means. I think Nick Beglinger from Swisscleantech [13] said it best: “The Swiss have a culture and lifestyle that emphasizes sustainability in their daily lives.” The Swiss have one of the highest recycling rates in the world—they recycle up to 95 percent of glass and they use 50 percent of the energy per capita compared to the U.S. Recycling, energy efficiency and stewardship are integrated into daily life in Switzerland. Even Mobility Carsharing [14] has its roots in Switzerland.
The Swiss President Doris Leuthard made cleantech one of the top priorities of the country’s economic recovery. Almost one billion Swiss francs of the Swiss government stimulus package are targeted towards energy efficiency, renewable energy and the environment. As a result of such heavy investment and friendly government regulation, Leuthard expects the clean technology sector to continue to grow, reaching a volume of 3 trillion Swiss francs worldwide by 2020, double its current size. “This is growth that no government can ignore,” she said. Leading the charge towards such productivity are Swiss organizations such as Swiss Cleantech, Think Swiss [15], Switzerland Trade and Investment Promotion [16] and the Embassy of Switzerland [17]. This growth spurt is being trumpeted abroad, and was recently highlighted by Swiss-U.S. Cleantech dialogue events in Atlanta, Washington D.C. and New York. Another such event is planned to take place in Zurich.
Today, with a workforce of 160,000 in cleantech—which accounts for 4.5 percent of all employment in the country—Switzerland is a world leader in terms of its innovation potential and research landscape. Switzerland has scored notable successes in the global cleantech arena through multinational manufacturing giants such as ABB [18] and Oerlikon Solar [19]. Other standout companies include Geberit, Schulthess Group, Ernst Schweizer Metallbau, Walter Meier, Hoval, Landis&Gyr, TRITEC and Renggli.
The Swiss Minenergie is one of the world's most advanced green building rating systems. The Minenergie standard is a quality label for new and refurbished homes for low energy consumption buildings. So far, 15,000 Minergie certifications have been distributed compared to 2,000 LEED certifications in the U.S. The Swiss embassy in Washington, D.C., is currently being renovated as a sustainability an Minergie reference project. The goal is to showcase the key Swiss firms that are supplying the key components for the renovation. Other large corporate buildings that are being designed, constructed or renovated to attain Minenergie certification include Coop and Migros, IKEA, Swiss Re and Zurich Cantonal Bank.
The 2000-watt society is a vision—originated by the Swiss Federal Institute of Technology in Zürich at the end of 1998—that seeks to cut energy use in the developed world. Specifically, the goal is that each person in the developed world would cut their overall rate of energy use to an average of no more than 2,000 watts by the year 2050—and this is to be done without lowering their standard of living. While the goal has been met with some skepticism as to its viability, the concept is well supported nationally. Recently, 70 percent of the population in Zurich voted in support of putting the 2000-watt concept into practice.
Swiss get their own neighborhood in Masdar City, Abu Dhabi [20], called the Swiss Village. Nick Beglinger, SVA President said Eco-City is another example of the close ties between the two countries. It also speaks to a shared sustainability vision. “The relationship between Switzerland and Abu Dhabi is excellent,” Beglnger said. “Swiss Village is an important element of that relationship. We now have a concrete link into the Masdar project, and a platform representing Swiss companies of all types and sizes. SVA offers the possibility to generate exports and to secure one of the most attractive company locations in the Gulf. Swiss firms can act as a community, strengthening each other in terms of know-how and joint offerings.”
Switzerland runs on hydroelectric power! Hydroelectric power accounts for about 58 percent of Switzerland's electricity production. Another 10 percent of electric power production comes from recycling programs. As a country, Switzerland does not use fossil fuel for electricity production anymore.
Swiss Innovations. Switzerland is a small country inhabited by only 7.4 million people. The economy is based on the production of individual goods and services of high quality, such as precision instruments, which is an excellent backdrop for a growing Cleantech economy. “One Third of our portfolio companies are located here in Switzerland”, adds Jürgen F. Habichler, Founder and Managing Partner of Zurich based Growth Capital Fund Mountain Cleantech AG, “the Swiss combine entrepreneurial skills with technical expertise”. Other exciting Swiss Cleantech companies include Myclimate [21], Geroco [22], Nolaris [23], Flisom [24], TEXX [25], Flexcell, Airlight Energy [26], EdiSunPower, [27] and Smixin.
Shawn Lesser is the president and founder of Atlanta-based Sustainable World Capital [28] (SWC), which is focused on fund-raising for private equity cleantech/sustainable funds, as well as private cleantech companies and M&A. For information, visit his Web site [29].
Want to author a guest column yourself? We welcome contributions, and would like to hear from you. Guidance and directions here [30].
--------------------------------------------------------------------------------
Source URL: http://cleantech.com/news/5822/10-reasons-switzerland-cleantech-leader
Links:
[1] http://epi.yale.edu/Countries/Switzerland
[2] http://www.proinno-europe.eu/
[3] http://www.sarasin.ch/internet/iech/en/index_iech.htm
[4] http://www.sam-group.com/htmle/main.cfm
[5] http://www.mountain-cleantech.ch/
[6] http://www.goodenergies.com/
[7] http://www.emerald-ventures.com/aboutUs.aspx
[8] http://www.ubs.com/
[9] http://www.pictet.com/
[10] https://www.credit-suisse.com/ch/en/
[11] http://www.zkb.ch/
[12] http://unigestion.com/
[13] http://www.swisscleantech.ch/
[14] http://www.mobility.ch/pages/?dom=6
[15] http://www.thinkswiss.org/events/details/122-Green Job Creation
[16] http://www.osec.ch/internet/osec/en/home/invest/us.html
[17] http://www.eda.admin.ch/eda/en/home/reps/nameri/vusa/wasemb.html
[18] http://www.abb.com/
[19] http://www.oerlikon.com/solar/Oerlikon Solar
[20] http://www.masdar.ae/en/home/index.aspx
[21] http://www.myclimate.org/
[22] http://www.geroco.ch/en/home.html?lang=en
[23] http://www.nolaris.ch/17-0-Our-Technology.html
[24] http://www.flisom.ch/e/index.html
[25] http://www.texx.ch/texx-website/press-release.php
[26] http://www.airlightenergy.com/Default.aspx?AspxAutoDetectCookieSupport=1
[27] http://www.edisunpower.com/de/home-de
[28] http://cleantech.com/news/companies/Sustainable-World-Capital
[29] http://www.sustainableworldcapital.com/
[30] http://cleantech.com/submitnews
5/25/2010
Blair joins green venture capital firm
Mike Harvey in San Francisco Tony Blair has been signed up as an adviser by a Silicon Valley venture capital firm specialising in green technology.
The former Prime Minister “will leverage his advocacy for environmental issues”, according to Khosla Ventures, which has invested billions of dollars in an extensive portfolio that includes solar, wind, and nuclear energy, along with high-efficiency engines.
The firm was started by the Sun Microsystems co-founder Vinod Khosla in 2004.
Mr Blair said: “I share a clear vision with Vinod, one of the earliest leaders in clean-tech investment, that entrepreneurs in Silicon Valley and beyond will have a tremendous impact on our environmental future. I am increasingly and crucially aware of the fact that the answer to these twin challenges — climate change and energy security — lies in developing the technological solutions of the future.”
Mr Blair said that he could help with understanding the direction of government policies and make connections for Khosla. Mr Blair leads a Breaking the Climate Deadlock initiative aimed at getting countries worldwide to work together to combat climate change.
Khosla’s companies include Calera, a manufacturer of green cement products, and Kior, which converts wood chips into biofuels. Mr Blair was taking part in a Khosla Ventures summit in California on Monday.
Mr Khosla said: “I have always admired Mr Blair’s early and consistent commitment to addressing climate change.”
The former Prime Minister “will leverage his advocacy for environmental issues”, according to Khosla Ventures, which has invested billions of dollars in an extensive portfolio that includes solar, wind, and nuclear energy, along with high-efficiency engines.
The firm was started by the Sun Microsystems co-founder Vinod Khosla in 2004.
Mr Blair said: “I share a clear vision with Vinod, one of the earliest leaders in clean-tech investment, that entrepreneurs in Silicon Valley and beyond will have a tremendous impact on our environmental future. I am increasingly and crucially aware of the fact that the answer to these twin challenges — climate change and energy security — lies in developing the technological solutions of the future.”
Mr Blair said that he could help with understanding the direction of government policies and make connections for Khosla. Mr Blair leads a Breaking the Climate Deadlock initiative aimed at getting countries worldwide to work together to combat climate change.
Khosla’s companies include Calera, a manufacturer of green cement products, and Kior, which converts wood chips into biofuels. Mr Blair was taking part in a Khosla Ventures summit in California on Monday.
Mr Khosla said: “I have always admired Mr Blair’s early and consistent commitment to addressing climate change.”
GAM To Launch UCITS Green Fund, Hires Ex-Tudor Manager Udall
Swiss hedge fund firm GAM is planning a UCITS III-compliant green offering.
The single-manager environmental fund will debut in the fourth quarter, helmed by new hire Paul Udall. The long/short vehicle will focus on energy and natural resources firms working on development, transportation and consumption.
GAM already has an environmental fund of hedge funds.
“Funds that focus on sustainable investing and environmental themes continue to play an increasing role in investors’ portfolios,” CEO David Solo said. “We are delighted that Paul has decided to join GAM, given his specialist skills and knowledge in this area.”
Before taking up his new post, Udall was a managing director at Climate Change Capital. He ran that firm’s Global Environmental Long/Short Fund. He also did stints at Tudor Investment Management and Morley Fund Management.
The single-manager environmental fund will debut in the fourth quarter, helmed by new hire Paul Udall. The long/short vehicle will focus on energy and natural resources firms working on development, transportation and consumption.
GAM already has an environmental fund of hedge funds.
“Funds that focus on sustainable investing and environmental themes continue to play an increasing role in investors’ portfolios,” CEO David Solo said. “We are delighted that Paul has decided to join GAM, given his specialist skills and knowledge in this area.”
Before taking up his new post, Udall was a managing director at Climate Change Capital. He ran that firm’s Global Environmental Long/Short Fund. He also did stints at Tudor Investment Management and Morley Fund Management.
5/21/2010
Baby-Faced Hedgie Launches Global Macro Fund
May 20 2010 | 2:25pm ET
A 24-year-old former analyst for Pharos Capital Group has decided to leave the confines of private equity for the hedge fund industry.
Alejandro Paschalides in March launched the Carina Capital Fund I, a global macro vehicle specializing in the energy sector. Paschalides said that the mispricings there were so great that he could not resist the opportunity to launch a hedge fund.
“I noticed that there was a variety of financial instruments and securities that were mispriced,” he said. “There are thinly-traded products, including the volume on long-dated crude oil futures relative to short-dated contracts, where the spread between prices several years out is very small relative to near dated contracts that no one is really looking at so I’m trying to take advantage of that.”
The hedgie rookie said his month-to-date returns are comparable to the precipitous fall of the energy sector in past months. Oil prices hit a seven-month low yesterday and the price of crude for June delivery fell $1.51 to $67.90 a barrel in intra-day trade this morning.
Aside from a down market for energy investors, Paschalides said his age and relative inexperience as a hedge fund manager are also big hurdles to overcome as far as fundraising goes, but he is optimistic that over the next year or so his returns will speak for themselves.
“Age is just a number, but returns are numbers as well and I think investors are smart enough to know which one matters more,” he said.
A 24-year-old former analyst for Pharos Capital Group has decided to leave the confines of private equity for the hedge fund industry.
Alejandro Paschalides in March launched the Carina Capital Fund I, a global macro vehicle specializing in the energy sector. Paschalides said that the mispricings there were so great that he could not resist the opportunity to launch a hedge fund.
“I noticed that there was a variety of financial instruments and securities that were mispriced,” he said. “There are thinly-traded products, including the volume on long-dated crude oil futures relative to short-dated contracts, where the spread between prices several years out is very small relative to near dated contracts that no one is really looking at so I’m trying to take advantage of that.”
The hedgie rookie said his month-to-date returns are comparable to the precipitous fall of the energy sector in past months. Oil prices hit a seven-month low yesterday and the price of crude for June delivery fell $1.51 to $67.90 a barrel in intra-day trade this morning.
Aside from a down market for energy investors, Paschalides said his age and relative inexperience as a hedge fund manager are also big hurdles to overcome as far as fundraising goes, but he is optimistic that over the next year or so his returns will speak for themselves.
“Age is just a number, but returns are numbers as well and I think investors are smart enough to know which one matters more,” he said.
5/19/2010
Brevan Opens New Commodities Hedge Fund
May 19 2010 | FinAlternatives
Brevan Howard Asset Management has launched a commodities hedge fund.
Europe’s largest hedge fund manager has begun accepting outside investors into the fund, which debuted in March. Brevan seeded the energy and commodities fund, which invests in commodity options and futures, with US$200 million, Bloomberg News reports.
The Brevan Howard Commodities Strategies Master Fund is helmed by Stephane Nicolas, who heads Brevan’s commodities desk. Nicolas has been with Brevan since 2004, and was named a partner three years later. Before joining the London-based hedge fund, he worked at Bank of America, DRW Trading and Société Générale.
The new fund charges 2% for management and 20% for performance. It has a $1 million minimum investment requirement.
Brevan Howard Asset Management has launched a commodities hedge fund.
Europe’s largest hedge fund manager has begun accepting outside investors into the fund, which debuted in March. Brevan seeded the energy and commodities fund, which invests in commodity options and futures, with US$200 million, Bloomberg News reports.
The Brevan Howard Commodities Strategies Master Fund is helmed by Stephane Nicolas, who heads Brevan’s commodities desk. Nicolas has been with Brevan since 2004, and was named a partner three years later. Before joining the London-based hedge fund, he worked at Bank of America, DRW Trading and Société Générale.
The new fund charges 2% for management and 20% for performance. It has a $1 million minimum investment requirement.
Merchant Commodity Fund Lost 19% in Four Months on Agriculture
May 18 (Bloomberg) -- Michael Coleman and Doug King’s $1.13 billion Merchant Commodity Fund dropped 19.4 percent in the first four months of the year, lagging behind the industry average, because of losses in agriculture.
The S&P GSCI Agriculture Index lost 15 percent through the end of April as New York-traded raw sugar slumped 44 percent. The gauge also includes wheat, corn, soybeans, coffee, cocoa and cotton. Crude oil traded on the New York Mercantile Exchange rose 8.6 percent in the first four months. Commodity hedge funds fell 2.1 percent on average in the same period, according to Chicago-based Hedge Fund Research Inc.
The Merchant fund managed $1.13 billion of assets at the end of April, compared with $1.54 billion at the end of 2009, according to the investor report. The fund had $10 million in June 2004 and assets peaked at $2.54 billion in February 2008.
Coleman, 49, and King, 43, are former Cargill Inc. traders. The fund gained 5.2 percent last year and 24 percent in 2008. Merchant more than tripled investors’ money since 2004.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising prices and participate substantially in profits from money invested.
--Editors: Stuart Wallace, Alastair Reed
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
The S&P GSCI Agriculture Index lost 15 percent through the end of April as New York-traded raw sugar slumped 44 percent. The gauge also includes wheat, corn, soybeans, coffee, cocoa and cotton. Crude oil traded on the New York Mercantile Exchange rose 8.6 percent in the first four months. Commodity hedge funds fell 2.1 percent on average in the same period, according to Chicago-based Hedge Fund Research Inc.
The Merchant fund managed $1.13 billion of assets at the end of April, compared with $1.54 billion at the end of 2009, according to the investor report. The fund had $10 million in June 2004 and assets peaked at $2.54 billion in February 2008.
Coleman, 49, and King, 43, are former Cargill Inc. traders. The fund gained 5.2 percent last year and 24 percent in 2008. Merchant more than tripled investors’ money since 2004.
Hedge funds are private, largely unregulated pools of capital whose managers can buy or sell any assets, bet on falling as well as rising prices and participate substantially in profits from money invested.
--Editors: Stuart Wallace, Alastair Reed
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
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