23/09/2008

Dubai invests $150m in hedge funds

Dubai Multi Commodities Centre, an arm of the Dubai government, has invested $150m in three commodity-related hedge funds that will trade commodity equities in compliance with Islamic religious principles.

The three funds – Tocqueville Asset Management, Zweig-DiMenna International Managers and Lucas Capital Management – were each given $50m to make investments that comply with Shariah, or Islamic law.

They will invest in commodity-related stocks ranging from oil to gold and are the first funds to become part of Dubai Shariah Asset Management (DSAM), a joint venture between Shariah Capital and Dubai Commodity Asset Management, a wholly owned division of DMCC.

The feeder funds will be registered in Cayman and branded under the DSAM Kautha name.

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