Launched Jan 2005, this article from April 2005 -
"Red Kite Management launched its Red Kite Fund with $25
million in January, and has since expanded the vehicle to
nearly $100 million. The fund invests in futures, options and
physical contracts involving copper, nickel, zinc, lead, tin
and aluminum, following a strategy that principals Michael
Farmer and David Lilley used to rack up average annual gross
returns of 48% at former employer MG Metal and Commodity.
The Red Kite fund is up 9% since inception.
Farmer and Lilley are based in London. Red Kite’s other
two principals, David Waite and Oskar Lewnowski, are stationed
in New York.
Farmer, who has more than 40 years of experience in
metal trading, got his start at Philipp Brothers in London. In
1990, he joined MG Metal, a London division of
Metallgesellschaft, to run the metal-trading business. That
operation went public in 2000 and was later purchased by
Enron, but then folded after the company’s collapse.
Lilley worked with Farmer at MG Metal, and with
Lewnowski at a metal-investment and trading outfit owned
by private equity firm Safeguard. Lewnowksi’s father, who
has the same name, owns hedge fund administrator Olympia
Waite has been in the metal business for more than 30
years, during which time he separately headed units at Drexel
Burnham Lambert, PaineWebber and Rudolph Wolff. In 2000,
he set up his own consulting shop, Commodity Risk
Red Kite selects its investments by combining a technical
trading approach with fundamental analysis of supply and
demand. Because the firm deals in physical contracts with
metal users and producers, it claims to have a better grasp on
the market than trading shops that deal only in futures —
and thus communicate almost entirely with other traders.
Red Kite’s fund has a minimum investment requirement
of $500,000, with no lock-up period. Investors may withdraw
capital on a monthly basis. Fees are equal to 2% of
assets and 20% of profits.