London-based hedge manager Orn Capital is preparing to launch an energy and natural resources-focused fund that will take long/short equity positions in power, gas and oil companies across the globe and overlay these investments with commodity derivatives.Lindsay Jones, head of business development, said trading in wholesale energy contracts provides the fund with a novel twist on the generic long-short equity hedge fund and should offer both arbitrage opportunities and also allow Orn to better understand the energy companies in which it is investing.
Orn recently recruited two fund managers from Deutsche Asset Management to launch the fund. Alan Livsey and Tal Lomnitzer both have a background in energy and resources, although neither has actively managed a hedge fund before, said Jones. Both were out of the office raising capital for the fund last week and could not be reached for comment.
Orn already has a commitment of USD20 million from one investor, but will aim to raise at least another USD10 million before the launch this fall. The firm does not have any specific targets for growth.
Orn has USD720 million under management and already runs risk arbitrage, distressed debt, global credit and convertibles funds.
Livsey left Deutsche Asset Management at the beginning of July, while Lomnitzer left in April, according to a Deutsche Asset Management spokesman.
