(Bloomberg) -- Commodity hedge fund Farrer Capital Management Pty has closed to new investment after raising $500 million, making it one of the only specialist agriculture investors in the market.
In a statement, Farrer Capital said it had “successfully achieved its stated targeted capacity” and had “closed its doors to further investment capital.” Bloomberg reported earlier this year that it had been aiming to raise $500 million.
Run by former Merricks Capital Head of Commodities Adam Davis, Farrer believes geopolitical tensions and climate change will drive opportunities in agricultural markets, it said.
Commodity hedge funds have come in and out of fashion in the past two decades, with one-time stars such as Astenbeck Capital Management, Blenheim Capital Management and Clive Capital exiting the market.
The sector has seen a tentative revival in recent years, but fund launches remain rare, and there are very few specialist agriculture funds. An index of the top 15 commodity hedge funds compiled by Bridge Alternatives — which it says collectively manage $19 billion — contains only one fund that is solely focused on agriculture.
Farrer Capital said it had staff in Australia, North America and South America and planned to continue a “global recruitment drive.”
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