Wednesday, September 30, 2015

Black River, Cargill, will be split into three new companies

Cargill intends to separate from most of its hedge fund operations, at a time when the fight against difficult market conditions and weak investor interest. The world's largest agricultural trading reported on Monday that will dismember and transfer to staff three Division funds operations Black River Asset Management, while the two remaining funds, negotiating agricultural products and energy, will be absorbed by Cargill. The Black River ran in June, $ 7.4 billion in assets.
The decision occurs the moment Cargill strives to improve his return amid volatile markets and the weakness of the emerging economies, where the company is both a supplier and major buyer. This year, the American company announced its first quarterly loss since 2001, and Chief Executive David MacLennan said the results were within expectations.
In July, the Black River has closed four other hegde funds due to what he called "limited investor demand". Part of the appeal of Black River is she inside the Cargill, whose international network operators have a reputation for enjoying unique advantages in the markets.
A pension fund consultant who recommended investment in Global Agriculture Fund Absolute Return Fund (Gaarf) of Black River, wrote in 2012: "as a result of the dominant position that Cargill has in the global market of agriculture, this Fund tries to take advantage of the insights about market fundamentals and repeat the positioning of own portfolio of firm future and options markets. The markets traded include wheat, corn, soybeans and soy products and oilseeds. "
But Cargill commodities strategies are having performance problems, according to a source familiar with the matter. Just an investor remains in bottom Gaarf. The Gaarf and released more recently called Cargill Energy, Transportation & Metals (ETM) will be transferred to Cargill Risk Management, a division that trades derivatives for commodity producers and institutional investors.
The Black River was formed in 2003 and had employees in 13 countries, according to their website on the internet. Its payroll of 205 people come shrinking since the closure of the Fund, in July.
The three deals will be transformed into individual companies are the main background of the Black River, a fixed income fund relative value of $ 2.2 billion led by Chief Investment Officer Jeff Drobny; a credit operation for emerging markets; and a private equity firm that manages three funds targeted for food, agricultural land and metals and mining, said the Black River.
After months of analysis, the Council and the administrative staff of the Black River decided "that an independent firm and controlled by officials would meet better traders including Cargill," said a spokesman for the company.
Cargill also controls a separate investment operation called CarVal, headquartered on the outskirts of Minneapolis. She was not affected by the changes, according to the spokesman.
Valor Economico News Item translated automatically
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