Commodity markets were “soft but calm” in April which suited The Merchant Commodity Fund well. The fund, run by Singapore-based Aisling Analytics, gained 7.9% in April and is up 11.07% year-to-date.
The fund looks for mispricings in commodity markets and the investment team at Aisling found mispricing opportunities in grain and oilseed, sugar, petroleum and energy.
The fund’s bullish bias in the oilseeds and vegetable oils sector paid off during April. Soybean prices rose just over 7% and soy meal almost 12% during the month amid concerns about a worsening soybean supply situation.
The fund also got