Wed, Jul 18, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Arion launches copper arbitrage strategy

Thursday, March 29, 2018

Bailey McCann, Opalesque New York for New Managers:

London-based Arion Investment Management has launched a new copper arbitrage strategy. The fund will be capped at $50 million, with $15 million already seeded by an institutional investor in the US. Arion hopes to bring in new investors for the remaining $35 million.

"This is one of those classic hedge fund trades," says James Purdie Head of Investor Relations at Arion in an interview with Opalesque New Managers. "Copper is a small and well-defined market, but we've been able to build the relationships needed to understand how the two copper exchanges work and are able to take positions not many players can take."

Arion is making trading decisions based on the structural inefficiencies between the London Metals Exchange (LME) and COMEX. Copper's price in London is often either above or below that of the price in New York. Arion's ability to take a copper position and hold it based on its understanding of the two exchanges allows it to arbitrage copper pricing.

Copper prices can be heavily correlated to the equities market and are often used as a bellwether for where industrials are headed.

"This is a niche strategy, in a niche market and so it's not going to be feasible for big funds," Purdie says. "For investors that understand commodities, they immediately understand what we do. It can be a way to trade ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Blackstone, Goldman Sachs take minority stake in Francisco Partners[more]

    Komfie Manalo, Opalesque Asia: Hedge fund managers Blackstone Alternative Asset Management and Goldman Sachs Asset Management (GSAM) took a minority

  2. Ackman's comeback: How to ride his revival[more]

    From Barrons: Bill Ackman has endured a humbling three years: big public losses, an exodus by investors, and what a CEO calls an "ass-whooping" in an activist campaign. Now, the hedge fund titan could be making a comeback. Ackman's publicly traded investment vehicle, Pershing Squar

  3. Legal: Hedge fund seeks inquiry into Russian money-laundering at Danish Bank, Judge dismisses SEC suit against former Och-Ziff executives, Puerto Rico board survives hedge fund's constitutional challenge[more]

    Hedge fund seeks inquiry into Russian money-laundering at Danish Bank From Barrons: A Russia-focused hedge fund has asked Danish authorities to investigate their country's leading bank for allegedly allowing Russian officials to launder millions of dollars stolen over the last decade.

  4. Launches - Northern Trust sets up North America alternative fund services unit, SRI Capital launches maiden $100m fund to foster Indian and US startups, BlueBay launches alternative credit fund[more]

    Northern Trust sets up North America alternative fund services unit From Northern Trust has launched its alternative fund services business in North America in a bid to fulfil operational and strategic requirements of the growing alternative asset management industry. The

  5. Europe - European insurers deploy cash into infrastructure and private assets[more]

    From For years, Europe's insurers have suffered because of low or even negative interest rates that depressed investment returns. Private equity firms say they're ready to help. The firms are increasingly getting involved in insurance deals in the region, betting their investin