The Dublin-domiciled fund, which is set for launch this month, will employ an absolute return strategy with a long biased approach. Initial capital of $15m has been raised for the launch from a combination of European institutional and private investors.
Tal Lomnitzer will manage the fund, advised by Mark Latham at Commodity Intelligence. Lomnitzer has 12 years buy-side experience in global resources, including three years at the ORN Capital Global Resources Fund. He has also managed funds for Deutsche Asset Management and most recently for NewSmith.
Latham, who founded Commodity Intelligence in 2008, for four years managed a global long/short strategy for Odey Asset Management. He also managed the Baring Natural Resource Fund for five years between 1995 and 2000.
The fund’s strategy will combine a top-down thematic approach with bottom-up valuation work in order to construct a portfolio of between 100 and 150 stocks. Investments will be sector focused, concentrating on global energy, mining, precious metals and agriculture, principally through equities but also derivative instruments and debt.
Merchant said the fund will target investment from European-based investors including through IFAs, retail distribution channels, family offices, pension funds, fund of hedge funds, private clients and high net worth individuals.
BNY Mellon International Bank Ltd will be the fund’s administration, custodial and trustee services provider.
