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Merchant Capital’s Global Resources Fund to launch on the firm's UCITS Platform

Friday, October 08, 2010
Opalesque Industry Update - Merchant Capital (Merchant), one of the leading UCITS umbrella providers to the global hedge fund industry, has announced the third fund to launch on the rapidly growing platform – the Merchant Global Resources UCITS Fund.

The fund will employ an absolute return equity strategy with a long-biased approach to investing in global resources. The Merchant Global Resources UCITS III Fund has targeted a launch date in October with approximately $15m in assets under management. Initial capital has been raised from a combination of European institutional and private investors.

Tal Lomnitzer will manage the fund, advised by Mark Latham at Commodity Intelligence. Together they have a combined 33 years of resources-focused investing. Lomnitzer has twelve years’ buy-side experience in global resources, including a successful three years at the ORN Capital Global Resources Fund, returning 46.6% over that period. He has also managed funds for Deutsche Asset Management and most recently for NewSmith.

Latham, who founded Commodity Intelligence in 2008, for four years managed a global long/short strategy for Odey Asset Management. Most notably he managed the Baring Natural Resource Fund for five years between 1995 and 2000, returning 20.4%.

The strategy combines a top-down thematic approach with in-depth bottom-up valuation work in order to choose the 100-150 stocks the fund will be invested in at any one time. Investments are sector-focused, concentrating on global energy, mining, precious metals and agriculture, principally through equities but also derivative instruments and debt.

The Merchant Global Resources UCITS III Fund is targeting European-based investors from a wide base; including IFAs, retail distribution channels, family offices, pension funds, funds of hedge funds, private clients and high net worth individuals.

Commenting on the launch of the fund, George Cadbury, co-founder of Merchant’s UCITS umbrella, said:

“We are delighted to be launching the Merchant Global Resources Fund. This strategy is a perfect fit for a UCITS fund and will be attractive to investors because of the manager’s track record and the transparent nature of the fund structure. Commodity Intelligence’s level of experience and success is indicative of the type of markets we are targeting.”

Tal Lomnitzer, Fund Manager of the Merchant Global Resources UCITS III Fund, said:

“With the industrialisation and urbanisation of emerging economies we believe that the global economy has entered a ‘supercycle’ for commodities, therefore, this is a great time to launch a resources-focused strategy. A fund of this nature within the UCITS structure provided by Merchant Capital will be very well received by investors who want exposure to the resources sector with controlled volatility.”

BNY Mellon International Bank Ltd will be the fund’s administration, custodial and trustee services provider.

Merchant’s UCITS III umbrella structure allows asset managers to launch UCITS-compliant investment vehicles, typically hedge funds. Managers who use the Merchant platform are free to brand their products as they see fit, best reflecting the style and investment philosophy of their fund.

(press release)

Merchant Capital (“Merchant”) has built a UCITS III umbrella structure domiciled in Dublin. Coupled with the extensive experience of its management team, clients are supported by some of the industry’s leading service providers whilst being provided with a cost-effective entrée to the UCITS market. Merchant has extensive structuring, investment management and systems expertise.

As investment manager of the UCITS III Umbrella, Merchant will appoint the client as adviser or sub-manager of a sub-fund (“Cell”). This Cell will be managed according to the client’s instructions whilst Merchant manages the oversight, administrative, processing and regulatory functions. Independent trustees are appointed: a UCITS requirement and also a due diligence prerequisite for many investors.

Commodity Intelligence is a successful advisory firm with deep expertise in commodity equities that has blue chip customers across the financial sector.


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