Merchant Capital set to launch global absolute return fund

Merchant Capital, a Ucits umbrella provider to the global hedge fund industry, is to launch an absolute return equity strategy with a long-biased approach to investing in global resources.

Managed by Tal Lomnitzer, the Merchant Global Resources Ucits III fund will invest in global energy, mining, precious metals and agriculture.

The fund’s strategy combines a top-down thematic approach with in-depth bottom-up valuation. Its investments are sector-focused with around 100-150 individual stocks.

Lomnitzer will primarily invest in equities. In addition, he can also use derivative instruments and debt. (article continues below)

The launch is targeting European-based investors, including independent financial advisers, retail distribution channels, family offices and high net worth individuals.

Lomnitzer says the fund will suit investors who seek exposure to the resources sector with controlled volatility. Prior to his appointment as fund manager of the Merchant Global Resources Ucits III fund, he worked on the ORN Capital Global Resources fund.

Mark Latham, the principal at Commodity Intelligence, will advise him on the fund. Latham, who founded Commodity Intelligence, previously managed a global long/short strategy for Odey Asset Management.

The fund is scheduled for launch later this month and Merchant Capital expects the fund to have $15m (£10m) in assets under management. The initial capital has been raised from a combination of European institutional and private investors.

BNY Mellon International Bank Ltd will be the fund’s administration, custodial and trustee services provider.