Investec-Blackfish Hedge Fund Launch

Investec Bank and Blackfish Capital Management launched a long/short natural resources hedge fund on March 1 with a plan to raise $300 million over the next six to 12 months from undervalued stocks in the mining and resources sector.

With a $40 million Equity at Launch, the Blackfish-Investec Resources Special Situations Fund's prime broker is Goldman Sachs, with Walkers as Law firm and Butterfield Bank as administrator, Kinetic Partners will Audit the new hedge fund.

The Blackfish-Investec Resources Special Situations Fund is domiciled in the Cayman Islands. Targeted primarily at institutional investors, the the hedge fund strategy will be to achieve absolute returns through strategic investments in the small to mid-cap resources sector focused on value opportunities on the long and short side. The manager will trade the underlying commodities to provide a hedge to the market, actively managing commodity price risk.

Investec and Blackfish have each invested $20 million into the fund as seed capital. The hedge fund investment team is led by Martyn Konig, chief executive of Blackfish Capital Management and George Rogers, head of commodities and resource finance at Investec Bank.

Established in 1974, Investec is a specialist international banking group that provides a diverse range of financial products and services to a niche client base in the UK and Australia as well as South Africa, its country of origin, and various other countries. Investec Bank (UK) is a unit of South African banking group Investec Plc.