Farrer Capital Management Pty has closed its fund to new investments after reaching its $500 million target, establishing itself as a rare specialist in agricultural commodity trading. The fund, led by former Merricks Capital Head of Commodities Adam Davis, aims to capitalize on opportunities driven by geopolitical tensions and climate change.
The closure highlights a notable gap in the commodity hedge fund landscape. Among Bridge Alternatives‘ top 15 commodity hedge funds, which manage a combined $19 billion, only one exclusively focuses on agriculture, underscoring Farrer’s unique position in the market.
The fund has built a global presence with team members across Australia, North America, and South America, with plans for continued international expansion. Its investment strategy combines derivatives trading and physical investments in global agricultural markets, with a particular focus on Australian opportunities.
Farrer Capital targets returns of over 15% and offers specialized high-conviction opportunities to investors. The successful fundraise comes at a time when commodity hedge funds are seeing renewed interest, following a period marked by the departure of several major players.
This milestone suggests a potential shift in investor sentiment towards specialized agricultural trading strategies, particularly as global factors like climate change and geopolitical tensions continue to influence agricultural markets.