New Raptor metals fund sees space for growth as banks abandon market

New metals-focused fund operator Arion Investment Management says the departure of major banks from commodities trading has created opportunities for smaller funds to regain a foothold in the market.

The UK-based commodity investment manager is launching a $400 million fund to capitalise on pricing differences of various instruments, including the LME-Comex copper arbitrage. The Raptor Commodities Fund, scheduled to debut in October, will focus on pricing discrepancies in the base and precious metal markets between related instruments, such as option surfaces and forward curves, company founder and former physical trader Gerardo Tarricone said in an interview with Metal Bulletin. “What created the opportunity is banks leaving or reducing risk-taking capabilities, reducing their commodities desks –...

Published

Archie Hunter

Julian Luk

September 19, 2017

03:28 GMT

London