Hedge Funds Look at Scrap Metals

Filed in archive Hedgetalk on May 11, 2007

In a Bloomberg article;
Senate aides, looking for new sources of revenue, are studying how Harvard, Yale and Stanford use offshore hedge funds to avoid tax bills.

Members of the Senate Finance Committee staff discussed the matter Monday with experts on taxes and hedge funds at a closed-door meeting on Capitol Hill, according to four congressional aides who were present.

In a Reuters article; "Scrap and waste metals tempt hedge fund"
A hedge fund firm has bought $3.4 million (1.7 million pounds) of scrap and waste for a company that will extract strategic and base metals for resale in a deal that could lead to a private equity investment.

Dublin-listed Greater Europe Deep Value Fund, advised by German-based Wermuth Asset Management, betting on high metal prices has invested the money for a company with operations in Russia, Kazakhstan, Uzbekistan and Tajikistan.