Noted commodities pundit and CNBC regular Dennis Gartman has decided to join the 2 and 20 crowd with the launch of his own hedge fund: River Crescent. I like the name... although it sounds far too peaceful. I'm aiming for something far more chaotic myself ;)
If indeed the current consensus that the solutions to our problems are laying the groundwork for a massive bout of inflation in the out years (2011 forward), Dennis should be able to throw a dart anywhere in the general direction of commodities and book big time gains. It will be interesting to see how he does, as running a hedge fund will be far different than writing a newsletter. Gartman is looking to raise what used to pass during the height of hedge fund mania as a very modest amount: $200 million.
Now we await the launch of Jeff Macke's hedge fund .... I assume it will somehow focus on cars. Or at least car people. [May 20, 2009: Holy Jeff Macke]
- Dennis Gartman, an economist and the editor of the Gartman Letter, said he is creating his first hedge fund to speculate on assets including global equities and commodities.
- The River Crescent Fund, created Aug. 17, seeks to raise $200 million over the first year, Gartman said today in an interview from Suffolk, Virginia. The fund already includes some â€œwell-known hedge-fund managers,â€ he said, without identifying them.
- Gartman has managed guaranteed notes since 2007 and an exchange-traded fund since April in Canada.
- The new fund â€œwill trade equities, grains, metals and almost anything that moves in the global markets,â€ including crude oil, said Gartman, who also will invest his own money. â€œWe have no mandate or limitation as to what I can or cannot trade. I am always long something and short something. I am always looking for ways to hedge my positions.â€
- The intention is to put to work in the hedge fund the buy and sell recommendations made daily in the Gartman Letter, he said.
- The fund is currently long soybeans and short wheat and long gold and short the euro, he said.
- Now is a good time to create River Crescent because the hedge-fund industry has probably bottomed since the slumping economy last year eroded asset values and forced many funds to close, Gartman said. â€œItâ€™s something Iâ€™ve wanted to do for a long period of time,â€ he said.