- Thomson Reuters
A hot new hedge fund had a great November.
London-based Commodities World Capital returned 9.9% net last month in its third month of trading.
That brings its year-to-date returns to 10.07%, according to an investor letter viewed by Business Insider.
The firm launched in September, and its first two months of trading were almost flat, at 0.15% in September and 0.02% in October.
“We are pleased with our first near double digit return and expect the commodities environment to continue to offer such opportunity,” the letter said.
It is unclear how much money the firm manages, but Business Insider reported earlier this year that the firm was aiming to raise about $100 million, and planned to run that capital for about half a year before taking in new investors.
CWC attributed its November performance mostly to its long copper position, accompanied by long positions in zinc, both long and short positions in gold and a short in silver, the letter said.
The firm plans to try and protect gains through the rest of the year while remaining “nimble” to put money to work when opportunities arise.
“This means we will aim to keep a little dry powder for new ideas,” the letter said. “Opportunities are presenting themselves with a frequency not seen in years.”
Commodities firms have barely gained this year. The HFI Americas Commodities index, which tracks commodities hedge funds, is up 1.45% through October. November figures were not yet available.
The GSCI commodity index was up 4.3% for November.
CWC was started by Luke Sadrian, Martin Reinke and Martin Jackson.
Sadrian, the CIO, previously worked at Brevan Howard, Moore Capital and his own firm Sadrian Bowman.
Reinke previously was a managing director at Barclays and Morgan Stanley, according to a LinkedIn page. Jackson was previously a metals trader at Sadrian Bowman, Merrill Lynch and UBS, according to a LinkedIn profile.