(HedgeCo.Net) L&J Capital Management is launching a new fund, the Galini Market Neutral Fund, on February 1st. The fund will be advised by Galini Capital Advisors (GCA), an investment boutique specialized in physical precious metal trading, based in Belgium and Colombia. GCA was co-founded by Jean-Sébastien Debusschere, who previously worked at Paribas, Deutsche Bank and Dexia in their asset management units. He founded FourWinds Capital Management, a USD 1.5 billion hedge fund and private equity group, in 2005.

The Cayman Islands fund, with a limited capacity of USD 30 million, aims to take advantage of inefficiencies in physical precious metal markets, mainly due to high barriers to entry (transaction sourcing, administration, operations….). Spreads to be extracted from trading in such a space are therefore by nature wide (typically in the range of 2.00% to 3.50% between “natural” metal bought and pure metal once refined and sold). In such an environment, the fund aims at generating a net return after all costs of at least 12 to 15% per annum, with a low volatility.

The fund offers investors monthly liquidity and full transparency on the underlying transactions.