Ex-JP Morgan and BNP execs launch commodity hedge fund
Singapore-based Four Elements Capital has launched the Earth Element Fund with a long/short commodity futures strategy.
000
New Singapore-based fund manager Four Elements Capital has established a new long/short commodity futures fund. The Earth Element Fund soft launched in December 2008. It targets an absolute return of over 20% per annum on volatility of 15%.
The CIO of the fund is Lionel Semonin, who used to work as a managing director at JP Morgan and BNP Paribas, building their global commodity investor businesses. He is joined by former JP Morgan colleagues Bertrand Egsbaek and Leila Kuhlenthal, who handle execution/risk management and investor relations/compliance respectively. The fourth element in the team is researcher Marion Lefevre, formerly of BNP Paribas.
The fund soft launched with $8 million in assets and currently has a $500 million capacity. It offers monthly liquidity and no lock-up.
The strategy is to use both fundamental and quantitative analysis in order to take long and short positions on a large set of commodity futures contracts across energy, agricultural commodities, precious and base metals. They will trade within eight to nine exchanges and stick to exchange-traded futures, therefore reducing counterparty issuer risks.
The fund can use maximum leverage equating to 200% notional contract exposure. The average gross positions have been in the 150% region but with no net long/short bias over a reasonable period of time û although the range of net exposure can be anywhere between plus to minus 200%. Fees for the fund include a 2% management fee and a 20% performance fee.
000
MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
In new statements on the extent of greenwashing in the fund management industry, Desiree Fixler highlights some uncomfortable truths about sustainable investing.
Korea Investment Corporation (KIC) and the National Pension Service (NPS) plan to enhance overseas voting rights and mandatory ESG filings for overseas companies.
Massive structural changes are underway in Asia. Which industries will stay ahead of the game after the pandemic and how can investors maximise the compelling opportunities?
Huge cuts in emissions from real estate assets will be essential to reach net zero carbon by 2050. Columbia Threadneedle Investments’ carbon neutral real estate approach has been established for over a decade and offers major benefits for all stakeholders.
China's sovereign wealth fund's 2020 returns may have declined, but the fund remains upbeat about US equities, external managers and the prospects for the Greater Bay Area
The world’s third-largest pension fund announced a shake-up in how it manages overseas fixed income and private holdings to cut expenses and improve execution.
Supply chains have been disrupted by surprise events such as the Colonial Pipeline hack and Suez Canal blockage. How do investors manage the risks posed to commodities?
AsianInvestor gains a set of views from investment experts on how likely it is whether some commodities are poised to enter a lengthy period of rising prices.
Some analysts remain bearish on gold, believing that energy, industrial metals or real estate would be a better hedge, while others think the metal is now trading at an attractive rate.
Gold, commodities and real estate are among the asset classes that investors should consider as hedges against inflation, but knowing when to get out is key.
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.
The asset allocation matrix is becoming more complex as investors look for new sources of returns beyond traditional asset types. How can investors measure and maximise returns in compounded portfolios?
When it comes to family offices, the generations don't always see eye to eye. For the younger generation, ESG concerns and tech plays are beginning to predominate.
Kwap property arm appoints CEO; VFMC names new CEO as Lisa Gray retires; MSIG Singapore promotes Mack Eng as CEO; Monroe Capital opens first Asia office in Seoul, hires head from Aberdeen; Vanguard Australia appoints new MD to relocate from US; HSBC AM expands EM debt team; Vantage FX hires from CGS-CIMB in Singapore; and more.
.jpg&h=320&w=480&q=100&v=20190520&c=1)
