Roman Blahoski, a spokesman for ADM, said in an e-mail that ADM Investor Services, while a wholly owned subsidiary, operates independently of the parent company. ADM uses ADM Investor Services for clearing services, but does not disclose details related to these transactions, Blahoski said.
Emanuel Balarie, the managing director of Balarie Capital Management, will oversee the fund with Jack Schwager, the author of books such as 'Market Wizards' and 'Managed Trading: Myths & Truths,' as well as senior managers at ADM Investor Services.
Continental Grain, established as a grain-trading firm in Arlon, Belgium, in 1813, became one of the largest privately held companies in the world, with operations in barges and livestock as well as grains. The company has been divesting some agricultural businesses, including its worldwide grain operations, which it sold to Cargill in 1999, and redeploying the capital through Arlon.
Rabobank Backing
Arlon is taking in outside capital for a stock and commodities fund that focuses on the food and agriculture industries, and for a commodities-only fund that started earlier this year, according to co-managers Keegan and Ari Gendason. The firm also plans to obtain more outside funds for Arlon Food & Agriculture Partners LP, a $300 million private-equity fund formed in December 2009 and backed by Rabobank Groep of the Netherlands, the world's largest agricultural lender, Keegan and Gendason said.
The firm established its stock and commodities fund, Arlon Opportunities Investors LP, in 2008 and has run it primarily with capital from Continental Grain up until now, Keegan and Gendason said. Part of the fund's strategy is to take advantage of opportunities in the commodities market created by rising investor interest as well as supply and demand dislocations, Gendason said in an interview last week.
"Historically the agricultural complex has taken a back seat in the commodities world to energy and metals," Gendason said, adding that the situation has now changed. "The corn market has gotten a lot more attention in the prior nine months than it has in the last 25 years."