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The Stenham Global Resources, a fund of hedge funds (FoHFs) managed by London-based Stenham Asset Management, focuses on commodity related sectors such as water, agriculture and soft commodities.

It selects best-of-breed managers who have long track records trading the underlying commodities. The long-biased FoHFs is a concentrated portfolio of 10-15 managers with a target return of Libor +6%-8% and volatility of 8%-11% per year. The top five holdings are Chilton Global Natural Resources, Clive, Fortress Commodities, Geosphere and Reservoir.

Launched in July 2006, it has achieved strong absolute returns significantly outperforming the MSCI World index (which started 2010 at 1,176 and was at 1,274 on Christmas Eve) and Dow Jones UBS Commodity index (which is up 5.55% YTD (to end-Nov.), -5.46% in the last 3 years and -0.23% in the last 5 years), with 60% less volatility than those indices. The FoHFs was down 0.48% in November, it is up 1.96% YTD (US$ class) and up 4.04% since inception - the cumulative performance being 19.1%. The fund's AuM is $49.7m.

According to Stenham's monthly report for November, within the commodity complex, while precious metals and crude oil showed resilience, most of the agricultural commodities gave back some of their recent gains. And within the FoHFs' portfolio, strong performances by an equity L/S manager and a sugar specialist manager were offset primarily by negative performance by a cocoa specialist and on a listed in......................

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