April 27, 2007
Over the Hedge: New Green Hedge Fund of Funds
by Anne Moore Odell
Kenmar plans to launch socially responsible hedge fund of funds for institutional investors.
Kenmar recently announced that it will
be launching a new SRI hedge fund of funds, the Kenmar Global ECO Fund SPC Limited, which will be
available to investors July 1. Kenmar hopes to tap into the growing interest of investors in
environmental, social, and corporate governance (ESG) issues while also achieving its goal of
A hedge fund of funds is a hedge fund that creates a
portfolio from other hedge funds instead of investing directly in stocks or bonds. These
“meta-funds” can be more diversified than other funds. However, hedge funds of funds often charge a
higher fee than regular mutual funds, as they must make up for the expense fees charged by the
Jerome de Bontin, President and CEO of Sustainability Investments LLC (SILLC) and Mekar Financial
Services (Mekar) worked with Kenmar as an outside sustainability adviser in the make up of the
Kenmar Eco Fund. SILLC will also take an active role in the distribution of the fund.
fund of funds can select asset management companies that are totally dedicated to a given market
sector,” de Bontin said. “For instance, renewal energy covers many different industries such as
wind, solar and fuel cells. The fund of funds will select experts in the industries that are
economically promising while staying out of the least profitable ones.”
portfolios within the framework of social and environmental sustainability is quickly becoming a
distinct driver of economic success in the near term while simultaneously promoting important
longer-term global ecological and societal goals, ” Moros added.
Certain tax-exempt US and
non-US investors can invest in Kenmar’s funds, with a number of limitations. Kenmar is primarily
targeting institutional investors with a minimum investment of $5 million.
Fund brings a new dimension to SRI and ESG investing,” de Bontin told Socialfunds.com. “It brings
together the best traditional long-only asset managers with the best commodity hedge funds.
Investments in commodities and raw materials are an integral part of the SRI and ESG movements, but
are difficult to access via traditional mutual funds. Kenmar Eco Fund facilitates such
Kenmar's eight-member Investment Committee, co-chaired by co-CIOs Marc
Goodman and Ken Shewer, make investment decisions for this and all of the Kenmar funds, based on
the recommendations of the Research & Risk Management Group.
Kenmar Global ECO Fund joins
a small, but growing number of funds of funds available to SRI investors. The Good Steward Fund and
Gabelli Asset Management Company are two hedge funds of funds that follow Catholic values. Winslow
Management Company has an environmental hedge fund, while Green Cay Asset Management has four SRI