By Beverly Chandler, Opalesque London:
A sixth fund has been launched by London headquartered, Armajaro Asset Management. The Armajaro Natural Resources Fund will be managed by Nick Glinsman who has joined the firm having run his own natural resources trading strategy, as an external portfolio manager for Brevan Howard. He is joined at the fund by James Whitehead, also from Brevan Howard, who will be the dedicated risk manager.
The fund will launch on 1 February, 2011 with US$ 60-70 m under management and take a diversified approach across a wide range of natural resources from metals to energy to agriculture, investing in north and south America and Australia. The strategy will focus on macro trends, taking positions in commodity-related equities rather than in commodity derivatives so that it can achieve leverage and liquidity.
In an exclusive interview with Opalesque, Glinsman said: “I look for indicators in the commodities markets, particularly in the ratios between gold and silver, or gold and copper or natural gas and crude oil.”
Glinsman will go long/short on the ratios with no bottom up investment element in the portfolio. “It’s equity-linked because I want the extra beta” he said. He will invest in mining companies against refiners; food producers against food manufacturers or gold versus miners. “We are very disciplined” he said. “We look at our ratios versus the underlying commodities.” The result is a performance stream that is unncorrelated to t......................
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