Alternative Market Briefing

Opalesque Exclusive: BlueAlpha rolls out agricultural commodity trading strategy into a new fund, the PolarStar Fund

Friday, November 21, 2008

Portfolio manager Uys Meyer told Opalesque about BlueAlpha’s new launch.

BlueAlpha Investment Management rolled its agricultural commodity trading strategy into a new fund, the PolarStar Fund, last month with AUM of $9m.

BlueAlha has been managing the strategy for the last 2.5 years achieving annualized returns in excess of 30%. The fund trades in agricultural product financial contracts listed on regulated global commodity exchanges. The PolarStar Fund employs a fundamental and relative value investment process, driven by supply and demand. The strategy will trade intra- and inter commodity and exchange spreads. Down-side risk is minimized by the active management style of the fund.

BlueAlpha Investment Management is based in Cape Town, South Africa. It is an owner managed investment fir......................

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Hedge Funds at Inflexion Point:

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The whole financial industry has reached an inflexion point, at which all market participants are challenged to identify the new themes and new paradigms that will determine asset management and how to create returns going forward.

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The participants also discussed the particularities of investing in Africa (ex-South Africa). You will hear portfolio managers explaining new ways to construct hedges, new and upcoming products. How do you deal with restricted liquidity, is Africa really uncorrelated?

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CBT - U.S. Ten Year Note (March) - Daily graph

Near Term Trend: Positive to Neutral Friday’s Close: 124’095 (- 1 pt, 14.5) Yield: 2.37% UPDATE: Following the drop in Interest rates of over 150 basis points within two months (prices traded from 110’00 to 128’00 during that time frame), on December 18, we wrote “A correction to the downside would be confirmed if the market closes below the gap which is located at 126’25- not before then”. Subsequently, the market closed about a tick or two below the gap, a week later, on December 26. Last Sunday, we reiterated, “The market should sell- off further”. As of five days later, the market is down a full 3 points (127’10 to 124’095).