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John Coast Sullenger Benedicte Gravrand, Opalesque Geneva.
Hedge fund managers take on different approaches to investing in agriculture. Some insist on small and mid-cap equities, others on adapting their positions in the supply chain according to current scenarios; some will only invest in emerging markets, others stick to the developed world. They all agree however that the challenges ahead make agricultural commodities a truly interesting and topical theme.
Fund managers’ strategies
John Coast Sullenger, portfolio manager at Geneva-based investment advisory firm GAIA Capital, said at the JetFin Agro conference in Geneva on Tuesday that it is much better to invest in agricultural ("Ag") equities than in physicals. Indeed, the total value of listed Ag universe of about $600bn shows that it is under-invested. Furthermore, financing Ag companies brings a positive social contribution. Sullenger’s Ag fund, the Cayman-domiciled GAIA World Agri Fund only invests in equities; it has a two-and-twenty set of fees, and it is now up 2.3% YTD, after returning 0.41% in April. The biggest sector exposures are farming and fertilisers and the biggest geographical exposures are China, Ukraine and LatAm. The fund also invests in small and mid-cap growth stocks, as the large cap space has become "somewhat populated, even trendy."
The Baring Global Agriculture Fund combines Ag in...................... To view our full article Click here
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