A natural resources fund of hedge funds managed by USD3.1 billion Swiss firm Harcourt Investment Consulting has performed poorly since it launched earlier this year, prompting the fund to reassess its allocation strategies. The Belmont Natural Resources fund, with just under USD100 under management, is down between 2.47% and 3.06% across its U.S. dollar, euro and Swiss franc share classes.
"We're certainly lagging others," acknowledged Stephen Williams, analyst. But the firm is still bullish about the strategy and will make concerted efforts to improve performance, added Martin Zulauf, business development. Specifically, the firm plans to increase the fund's diversification across all commodities. For example, its minimal exposure to weather derivatives could be increased, said Williams.
The fund has made gains in crude oil and natural gas and has seen "steady, if not stellar" returns from exposure to the metals sector, said Williams. It suffered more in electricity and problems of liquidity and increased volatility have adversely affected returns, he continued.
