- Reuters/Shannon Stapleton
- A new investment firm has opened in London, specializing in metals trading.
- The firm said it wants to take advantage of traditional banks scaling back their commodities arms.
- Its first strategy will focus on base and precious metals, but the fund plans to expand to other commodities.
LONDON – A new London-based investment firm opened its first strategy in metals trading, as international investment banks scale back their commodities trading arms.
Arion Investment Management will aim to exploit differences in price in base and precious metals traded in different markets. However, the firm has plans for expansion into other commodities.
“We have set up the fund in order to take advantage of the opportunities that have arisen, post-financial crisis, with large institutions, market mergers and banks having withdrawn liquidity and risk-taking capabilities from the commodity space,” said Gerado Tarricone, managing director and founder of Arion Investment Management.
“We believe there is an opportunity to exploit inefficiencies in the market that previously didn’t really exist,” he said.
The fund’s portfolio manager, Darius Tabatabai, was formerly a trader at UBS, head of precious metals trading at Credit Suisse and global head of metals at Bank of America Merrill Lynch.
“Our advantage lies in our ability to understand opportunity,” said Tabatabai. “By focusing on trade structure and risk management we believe we can achieve superior risk adjusted returns,” he said.