UK headquartered Ebullio Capital Management has opened an office in Denver, Colorado, to service demand from US investors for its commodity hedge fund.

The Ebullio Commodity Fund was launched in January 2008 with partner capital and opened to outside investors in October. The fund has produced exceptional returns since launch. It was up 68.96% in 2008 and at the end of March 2009 had a positive 5.72% return.

The fund targets annual returns of 2%-30% with a standard deviation of 5%-10%. It invests in all commodities markets through futures and options and some physical trading.

Ebullio describes the fund as a "pure commodity fund seeking alpha in all market cycles". The investment approach is discretionary and incorporates some technical and fundamental signals.

Currently it has around $40 million in assets. Ebullio expects to raise an additional $60 million by the end of the third quarter. The fund has capacity of $500 million.

"We feel that our commodity fund offers a type of risk and exposure that is becoming extremely appetising for the US market. Also the regulated and compliant nature of our commodity fund makes it a tremendously attractive proposition," said Paul Hudson, head of investor relations at Ebullio.

Ebullio Capital is authorised and regulated by the UK Financial Services Authority. The Commodity Fund is domiciled in the Cayman Islands. GlobeOp Financial Services provides administration services and Kinetic Partners in the auditor.

Lars Steffensen, managing partner at Ebullio, has 22 years experience in the commodities and metals trading industry. He said Denver was an ideal location for Ebullio as it looks to give US investors exposure to the Commodity Fund.

"The positioning in terms of geography and time zones enables us to comprehensively service our existing clients with an eye on any encouraging new opportunities," he said.