HedgeCo News - Global Fund Exchange has announced the launch of the AquaTerra Fund, a new investment vehicle which invests in global opportunities in agriculture, water and natural resources.
The AquaTerra Fund is a carve-out of the existing agriculture, water and natural resources strategies of the asset manager’s flagship portfolio, the Earth Wind & Fire hedge fund.
"The sustainability and efficiency needs for our water and food resources are the most critical ‘must outcome’ for Planet Earth." Global Fund Exchange CEO Lauralouise Duffy said, "The AquaTerra Fund is a focused investment on these vital assets."
The global population is growing at a rate of 80+ million people per year and is predicted to top 9 billion by 2050. As a result, the Food and Agriculture Organization of the United Nations (FAO) predicts that global agricultural output will need to increase by 70% to meet new demand.
Demand for freshwater is rising steeply as well. By 2025 it is estimated that global demand will exceed current available freshwater reserves by 25%. Unpredictable weather patterns causing severe droughts and major flooding have exasperated the food supply stability. In addition, rapid economic growth in developing nations continues to escalate resource supply and demand disparities, resulting in an exciting opportunity set for forward-looking investors who have identified these areas of growth.
"The best investments are when necessity creates opportunity," Chairman Anric Blatt said. "We are launching the AquaTerra Fund to offer our clients a focused, disciplined investment opportunity that capitalizes on these major global trends."