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Alternative Market Briefing

Commodities: How $2.2bln Aisling Analytics views historic commodities pricing and the debate on growing investor inflows, Nigeria attacks help push oil to $120 a barrel, hedge funds short more, Shine unlikely to come off precious metal, March mixed for CTAs

Tuesday, May 06, 2008

Opalesque Exclusive: How $2.2bln Aisling Analytics views historic commodities pricing and the debate on growing investor inflows Kirsten Bischoff, Opalesque New York: In the beginning of April, we took a look at the commodity markets, (see coverage.) and through the remainder of the month watched the aftermath of March’s rapidly rising prices and volatility unfold to effect consumer markets, bring about industry regulatory meetings, and spark debate on the effects of surging investment inflows. So, when Opalesque had the opportunity to speak with Mike Coleman, Partner at Aisling Analytics about the Merchant Commodity Fund we looked to gain some insight on these events from a manager’s point of view.

The Singapore based Merchant Commodity Fund (with approx $2.2 bln aum) invests purely in commodities; primarily derivatives, mostly exchange traded futures and options and some OTC contracts. The Fund tends to run about 50% energy and the other 50% is a mix of agriculture and soft commodities. “The intention is to give investors access to a trading style that is typical of a physical commodity trading house in terms of approach to the market.” In this respec......................

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