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27 Nov 2006

Investec-Rowland-Blackfish Hedge Fund

The Rowland family and Investec have both invested $20m in Blackfish-Investec Resources Special Sitaution Fund and plan to raise a further $250m from other institutions and high net worth families. The fund plans to buy or sell underlying commodities to hedge equity investments. The pair have teamed up after the big success in revamping Western Goldfields earlier this year.

The two companies, having pooled their skills, expertise and resources plan to establish an event driven special situations hedge fund with a long strategic bias and opportunistic shorting. The fund will in the main target undervalued companies in the natural resources sector as well as seek to profit from shorting overvalued situations or use short positions as a hedge.

The financial and infrastructural support will be carried out by Investec Bank, contributing seed capital, personnel, systems and marketing support. The hedge fund offers a differentiated deal flow, and an investment philosophy to achieve returns throughout the commodity cycle.

The hedge fund is to be led by Martyn Konig and George Rogers, the Fund Advisors are supported by the Commodities and Resource Finance team of Investec, Blackfish Capital Managements Natural Resource team and the Fund's Advisory Panel.

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