Tue, Jul 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund Agcapita Partners, launches Agcapita Farmland Fund IV

Tuesday, April 02, 2013
Opalesque Industry Update: Agcapita Partners has announced that the Agcapita Farmland Fund IV will open to investors on April 18th 2013 with a $20 million offering. Agcapita is the only farmland investment fund eligible for registered plans (RRSP, TFSA, RESP etc).

Fund IV will be open to investors in BC, Alberta, Saskatchewan, Manitoba and Ontario and for the first time time Newfoundland.

Farmland continues to appreciate as we predicted when we launched our first fund in 2008. We believe that strong agriculture commodity prices and expansive monetary conditions are supporting valuations globally but more interestingly, Saskatchewan appears to be closing the price gap with its neighbors and generating even higher rates of returns than Canadian farmland investments in general. We believe this is a demonstration of a margin of safety factor in Saskatchewan farmland which we find so compelling as investment managers. We continue our model of using minimal to no leverage for acquisitions in keeping with a commitment to risk mitigation.

Agcapita's series of farmland funds continue to show great appeal to conservative investors concerned with inflation and the volatility of their existing public equity investments. Farmland has similar inflation hedging qualities to gold but with an ongoing cash yield that gold lacks. Farmland returns exhibit low volatility and this combined with the high absolute returns from farmland equate to a favorable Sharpe ratio.

Agcapita's funds directly hold diversified portfolios of farmland in western Canada, and in particular in the highly price competitive province of Saskatchewan. Investors are provided with the comfort of a direct investment in farmland combined with a model of front-end loaded cash rents. Agcapita believes farmland is a safe investment, that supply is shrinking and that unprecedented demand for "food, feed and fuel" will continue to move crop prices higher over the long-term.

Agcapita Partners

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. The Big Picture: Party like it's 2007? Maybe not[more]

    Benedicte Gravrand, Opalesque Geneva: Are we on the verge of another crunch and partying unaware (bringing to mind Prince’s "1999" song). Some think that today’s financial environment – especially stock markets

  3. Long-only hedge funds hold key to emerging markets[more]

    From Risk.net: Addressing common institutional approaches to long-only emerging markets allocations, hedge funds are less volatile and produce higher returns than mutual funds or ETFs. Since the 2008 financial crisis, investors have flocked to emerging markets (EMs) for return generation as develope

  4. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  5. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend