Friday, August 21, 2009

Dennis Gartman Launches River Crescent Hedge Fund

Noted commodities pundit and CNBC regular Dennis Gartman has decided to join the 2 and 20 crowd with the launch of his own hedge fund: River Crescent. I like the name... although it sounds far too peaceful. I'm aiming for something far more chaotic myself ;)

If indeed the current consensus that the "solutions" to our problems are laying the groundwork for a massive bout of inflation in the out years (2011 forward), Dennis should be able to throw a dart anywhere in the general direction of commodities and book big time gains. It will be interesting to see how he does, as running a hedge fund will be far different than writing a newsletter. Gartman is looking to raise what used to pass during the height of hedge fund mania as a very modest amount: $200 million.

Now we await the launch of Jeff Macke's hedge fund .... I assume it will somehow focus on cars. Or at least car people. [May 20, 2009: Holy Jeff Macke]

Via Bloomberg
  • Dennis Gartman, an economist and the editor of the Gartman Letter, said he is creating his first hedge fund to speculate on assets including global equities and commodities.
  • The River Crescent Fund, created Aug. 17, seeks to raise $200 million over the first year, Gartman said today in an interview from Suffolk, Virginia. The fund already includes some “well-known hedge-fund managers,” he said, without identifying them.
  • Gartman has managed guaranteed notes since 2007 and an exchange-traded fund since April in Canada.
  • The new fund “will trade equities, grains, metals and almost anything that moves in the global markets,” including crude oil, said Gartman, who also will invest his own money. “We have no mandate or limitation as to what I can or cannot trade. I am always long something and short something. I am always looking for ways to hedge my positions.”
  • The intention is to put to work in the hedge fund the buy and sell recommendations made daily in the Gartman Letter, he said.
  • The fund is currently long soybeans and short wheat and long gold and short the euro, he said.
  • Now is a good time to create River Crescent because the hedge-fund industry has probably bottomed since the slumping economy last year eroded asset values and forced many funds to close, Gartman said. “It’s something I’ve wanted to do for a long period of time,” he said.

[Jun 17, 2009: Dennis Gartman Speech - Making It Through the Meltdown]
[Jun 8, 2009: Dennis Gartman Short Term Bearish on Oil]

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