Louis Dreyfus hedge fund to close Singapore office

Closure to eliminate four positions at Edesia, about 10% of the fund’s staff

The hedge fund controlled by commodity giant Louis Dreyfus Holding BV will close its Singapore office to focus on its European trading operations, according to three people with knowledge of the matter.

The closure will eliminate four positions at Edesia Asset Management BV, about 10 per cent of the hedge fund’s staff, two of people said, asking not to be identified. Edesia currently has close to $1.9 billion (Dh6.97 billion) in assets down from a peak of about $2.4 billion in 2012, said the people.

It’s the latest sign of the pain for commodity hedge funds as raw material prices trade at the lowest since the global financial crisis.

Trafigura Pte Ltd, another major commodities trader, said Monday it’s winding down its flagship commodity fund due to difficult markets conditions. Galena’s chief executive officer and Trafigura management board member Duncan Letchford is leaving the firm.

Hedge funds betting on commodities are heading for their worst performance in seven years, after losing 4.6 per cent in the first 10 months of 2015, according to the Newedge Commodity Trading index, which tracks the performance of raw-material trading strategies including equities and physical products.

Edesia, which trades agricultural commodities and metals remains committed to the sector and has the backing of its investors which include institutional hedge funds, two of the people said.