Bloomberg – Liongate Capital Management LLP, a London-based firm managing $2.2 billion, plans to raise $500 million for a fund of commodity hedge funds.
The Liongate Commodities Fund returned about 0.1 percent last year and 0.3 percent in January, when it operated with the firm’s capital of $40 million, the company said in a statement and a presentation. The Reuters/Jefferies CRB Index tracking 19 commodities lost 39 percent in the 13 months through Jan. 30.
“It’s an inauspicious time to invest in commodities,” said Tim Price, director of investments at London-based PFP Wealth Management, a financial adviser. “In the longer term, a shift to an inflation bias from the current deflation would represent a huge opportunity.”