NEW YORK, Jan 26 (Reuters) - Adam Davis, the former head of commodities trading at Merricks Capital, on Friday said he was launching an agricultural hedge fund with an initial target of raising $500 million for investments.
Davis said the new hedge fund, named Farrer Capital, plans to split investments in some directions including trading of commodities derivatives, the physical trade of agricultural products and the financing of commodities operations.
Davis led Merricks' Soft Commodity Fund since its inception in 2008 to over $600 million in assets under management. He will be the chief investment officer at Farrer Capital.
The two other founders of the hedge fund are Chief Operating Officer Alistair Fullerton, a former investment advisor at Tribeca Investment Partners, and portfolio manager Les Finemore, who has also worked at Merricks as a commodities trader and analyst.
"Investors are increasingly demanding fundamental sector experts that can navigate the complexity of the world's food supply chain," Davis said in a statement, adding that volatile weather patterns and rising geopolitical risks are creating "outstanding trading opportunities." (Reporting by Marcelo Teixeira; Editing by Mark Porter)
