NEW YORK (HedgeWorld.com)–Van Eck opened its offshore hard assets hedge fund, Hard Assets Portfolio Ltd., to outside investors.
After running the British Virgin Islands-domiciled fund for about three years with in-house money, Van Eck’s executives are ready to roll it out, he said. Van Eck manages the fund’s portfolio with a combination of stocks and future contracts, maintaining about 80% of the portfolio in equities and the balance in commodities, said Jan van Eck, president of Van Eck Securities.
Van Eck’s portfolio managers will consider just about any type of hard asset investment, including energy, timber, and mining, Mr. van Eck said. Gold stocks have run up tremendously this year, boosting interest in commodities-related investing, he said. About 80% of the portfolio will be invested in non-directional trades, such as pairs trades or spread trades, he said.
Van Eck manages a total of US$10 million in the hedge fund strategy, and about US$450 million in long-only hard assets portfolios. Van Eck manages about US$1 billion overall.
The prime broker for the offshore fund is Banc of America and the administrator is Prime Management Ltd., Hamilton, Bermuda.