Jain Global, the much anticipated hedge fund set to be launched soon by former Millennium Management Co-Chief Investment Officer Bobby Jain is to commit a significant chunk of its investment funds to commodities – both derivatives and physical, according to a report by Bloomberg.
The report cites an unnamed source familiar with the matter as revealing that the firm is planning to allocate between 15% and 20% of the $5bn its looking to raise to investments in raw materials. The fund, which is gearing up for a July debut, will trade commodities derivatives initially, before moving into physical transactions.
Jain’s commodities push will be led by former Macquarie Group veteran David Hochberg, who will lead an initial team of around 10 portfolio managers. North America and European gas and power trading will be the firm’s intital focus before expanding into other commodities and geographies, according to Bloomberg’s source.
Recent recruits to Jain’s commodities team include Paul Smith and Christian Allen from trading house Hartree Partners, Herb Petry from Sumitomo Corp affiliate Pacific Summit Energy, Dominic Magnabosco from Citigroup and Jason Greenberg from BlueCrest Capital Management.
