Laven Partners has joined with Cayman-domiciled Eiger Asset Management to launch four coffee-related funds.
Two of the funds are trackers-one long and one short- which follow the International Coffee Organisation (ICO) composite index and use derivatives and futures.
The range also includes one physicals-based vehicle, the Eiger Green Coffee fund, which is Shari'ah compliant for Islamic investors and targets returns of 12% per annum.
Finally, the Alpha fund is a total return vehicle which will manage long/short exposure to hedged physicals, purchases and sales, inter-market spreads, volatility arbitrages plus a capped directional component. It targets a return of 15% per annum.
There is growing demand for physicals-based commodity funds, particularly within the agricultural sector, says Bart Mauldin, senior investment adviser at Eiger Trading Advisors.
"The family of Eiger coffee strategies represent an attractive opportunity to invest in a tangible and highly liquid asset type," he says.
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Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation