Irv Arenberg and Associates, a long/short gold hedge fund manager that already utilizes listed derivatives, is considering entering its first over-the-counter contracts. Irv Arenberg, senior managing director and portfolio manager in Bayville, N.Y., said the firm is waiting to grow its assets before entering any OTC transactions. He added that it does not have any specific triggers for when it will enter its first trades.
The firm has around USD3.5 million in assets through its NAG 1 fund and has recently launched a similar fund to raise more capital. The new fund, dubbed Nostradamus, is expected to raise around USD100 million within a year. The NAG 1 fund is closed to new capital for tax reasons.
Various over-the-counter trades are under evaluation, although it is too early to say what these would be, said Arenberg. The purchase of warrants as a means of gaining exposure to smaller gold exploration and mining companies is also a consideration, he added.
Banc of America Securities is the prime broker for the fund, but it would shop around for the best execution on any over-the-counter trades.
