Farrer Capital, a new  agriculture-focused hedge fund co-founded by Adam Davis, the former Head of Commodities Trading at Merricks Capital, is looking to raise an initial $500m for investments, according to a report by Reuters.

Davis, who led Merricks' Soft Commodity Fund since its inception in 2008 to over $600m in assets under management, will serve as CIO at Farrer Capital. The firm's other two founders are COO Alistair Fullerton, a former investment advisor at Tribeca Investment Partners, and Portfolio Manager Les Finemore, who also worked at Merricks as a commodities trader and analyst.

The report cites Davis as saying on Friday that the new hedge fund, will trade OTC commodities derivatives across global agricultural commodity markets, and will also be able to take physical positions in Australia where the team has particular expertise.