Moreton Capital Partners (MCP), a quantitative and physical commodities specialist, has launched the MCP Special Opportunities Fund, a Cayman-domiciled strategy designed to capitalise on weather-driven dislocations across global commodity markets.
The fund is targeting $500 million in commitments by the end of September and opens for subscriptions in mid-July, aims to benefit from supply chain disruptions and food inflation risks linked to a developing El Niño event.
MCP believes deteriorating weather conditions, including a weak Indian monsoon, drought across parts of Asia and heatwaves in Europe, are early signs of mounting pressure on agricultural production and global food supplies. The firm argues that commodity markets remain largely priced for normal weather conditions despite growing climate-related risks.
The actively managed strategy will invest across more than 15 commodity markets through a combination of long and short positions in futures, options and swaps. Markets under consideration include soybeans, wheat, maize, palm oil and rubber, with the portfolio designed to capture relative-value opportunities and weather-driven supply imbalances rather than express a purely directional view on food prices.
Les Finemore, co-founder and chief investment officer of MCP, said the firm believes markets are underestimating the potential impact of El Niño on agricultural supply chains and inflation through 2027.
The fund is targeting annualised volatility of around 30% and will be marketed primarily to institutional investors, including pension funds, insurers and endowments seeking both return opportunities and a hedge against weather-related inflation risks.
