Described as a “first of its kind” according to Citywire Global, Highbridge Capital Management this week announced the launch of a UCITS III-compli
Described as a “first of its kind” according to Citywire Global, Highbridge Capital Management this week announced the launch of a UCITS III-compliant fund that will invest in commodities futures. Entitled the Highbridge Diversified Commodities Fund, the Lux-domiciled SICAV will get around UCITS restrictions on commodities and invest in commodities futures by using a total return swap. Between 25 and 30 of the most liquid commodities will make up the portfolio, to be managed by Mark Nodelman and Sassan Alizadeh. The fund will be long-biased but has the ability to go short should circumstances warrant it. Driven by client demand for a commodity-focused fund and given its structure, J.P. Morgan’s head of UK retail sales, Jasper Berens, said that investors would only be exposed to commodity risk using the total return swap rather than both commodity and equity risk. “Commodities tend to be dominated by their own supply and demand dynamics,” said Berens. “As a result, diversifying a portfolio of equities, bonds and other alternatives with commodities may offer further diversity within a balanced portfolio.” J.P. Morgan Asset Management entered into a strategic partnership with HCM in December 2004, officially acquiring it July 1st 2009. Earlier this month Highbridge began liquidating its USD1.4billion Asia Opportunities Fund in Hong Kong following the resignation of Carl Huttenlocher.
