Fund's golden opportunity
VERMILLION, the commodity arm of the formidable US private equity group Carlyle Group, started trading a new gold and base metals fund this month as it seeks to rebuild market presence after losing more than half of its capital, Reuters reported this week. It's not a big fund, with capital of just $122.5m from 23 investors, but it looks interesting.
Some Irish investors will be familiar with at least one half of the team running the new fund. Trading will be overseen by Greg Buechele and James Tatum. Tatum was head of European base metals trading at Dublin-based Susquehanna Investment Group before joining Vermillion in 2011. Buechele was a commodity index products manager and timber trader at Goldman Sachs before he joined Vermillion in 2007 to help in trading base and precious metals and develop livestock market strategies.
Despite Vermillion's ups and downs in commodities, the fund has "won a liking for its physical premium play in metals, combined with options trading", Reuters reported. "That's one reason they've been able to get good support from outside investors for this new venture," it added.