Ascalon launches global commodity fund

Nick Basile

Ascalon Capital Managers and H3 Global Advisors have announced the launch of the Ascalon H3 Commodities Fund, which promises to deliver strong returns despite the market downturn.

H3 chief executive officer Andrew Kaleel said the fund provides investors with exposure to a diversified commodities portfolio.

According to Kaleel, commodities have a strong track record of outperforming other asset classes, especially in periods of high inflation and negative market environments.

“In January 2008, the H3 Commodities Program returned +4.44 per cent. In the same period, other major asset classes such as Australian and international equities, listed property and hedge funds suffered negative performance,” he said.

The fund’s objective is to generate superior risk-adjusted returns relative to major global commodity indices and will be managed by Andrew Kaleel, Mathew Kaleel and Dr Robert Bianchi.

Ascalon CEO Nick Basile said the timing for an actively managed and highly rated commodity offering is ideal in the current market conditions “given the supply and demand dynamics in agriculture, oil and precious metals and as a hedging strategy against inflation”.

“This is how Ascalon as an incubator of boutique fund managers works with its boutiques, assisting to commercialise quality investment management capabilities leaving the managers to focus on what they do best, managing the assets,” Basile said.

Ascalon acquired a 30 per cent equity interest in H3 in July 2007, which was in line with Ascalon’s investment philosophy for boutiques of having the original principal’s maintain majority share of the company.