Commodities firm Vermillion Asset Management launched a metals hedge fund this month.
Reuters reported that the fund, which focuses on physical and derivatives trading, began trading earlier in March after raising $122.5 million from 23 investors. The fund is managed by Vermillion portfolio manager Greg Buechele, who was a commodity index products manager and timber trader at Goldman Sachs before he joining the New York-based firm in 2007 to assist in trading base and precious metals and develop livestock market strategies.
Vermillion’s assets under management dropped to around $900 million in December from about $2 billion in March 2013 following some negative returns; two of the firm’s funds posted losses last year.
Founded in 2005 by Drew Gilbert and Chris Nygaard, Vermillion was acquired by private equity firm Carlyle Group in 2012.