Bloomberg – Threadneedle Asset Management Ltd. is seeking to increase its commodity fund to as much as $1 billion in the next two years as the global economic recovery drives a rally in oil, sugar and metals.

The London-based hedge fund, founded in 1994 and overseeing assets of $79.6 billion, is targeting a return of up to 15 percent this year from its Threadneedle Commodities Crescendo Fund, manager David Donora said in an interview. The $22 million fund returned 5 percent to July 27, he said. Commodity trading advisers, or managers who trade futures globally, returned 0.3 percent this year, data from Eurekahedge Pte Ltd. show.

“We are in the process of expanding our commodity fund,” said Donora, who has 25 years experience in raw materials and derivatives trading. “We are targeting between half a billion and a billion dollars for the fund in the next two years. We’re seeing an increased amount of interest.”

Read Complete Article

Tags: commodities, commodity trading, derivatives trading, economic recovery, hedge fund