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From Benedicte Gravrand, Geneva:
Mari Kooi, founder of Santa Fe-based Wolf International, an asset management company managing several funds of hedge funds (website), produces a free quarterly paper for professionals in the hedge fund industry. It is usually on one topic and is around 15 pages long.
Last paper on Ethanol: we are beginning to hedge
The last paper focuses on the ethanol industry and the impact that food for fuel will have on the investment environment, as we are headed for weaker markets. It addresses a wide range of opinion.
“The basic story of ethanol is that it was a bull market long-side only when people built plants because demand was rising of course,” Mrs. Kooi said. “The thrust of the paper is that, given that we are all in the hedge fund business, it is now evolving into a hedgeable strategy as it becomes a two-way market both at the product level and at the input level. This is growing to an extraordinary size both in the U.S. and in other places, and now other related products - other alcohol and fuel substitutes - are part of the burgeoning market. What we are seeing is that the demand for derivatives is dramatically rising. It is in the early days of a market like that you can really make money easily - usually about the first three years - and we are in that phase.” See ...................... To view our full article Click here
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