Armajaro Asset Management has launched its fourth commodity hedge fund investing in liquid exchange traded commodity derivatives.

The systematic trend-following Armajaro STS Commodities Fund will invest in derivatives including base metals, precious metals, energy and soft commodities.

The strategy has a long-term trading horizon, aiming to generate superior returns and control risk. Trade signals originate from a proprietary systematic program developed by portfolio manager Will Griffin.

Armajaro chief executive Richard Gower said the STS Commodities program had been running within the Armajaro Commodities Fund for three years and had a proven track record.

The fund will soft-close at $100 million and Armajaro is offering managed accounts on a case-by-case basis.

The fund is domiciled in the Cayman Islands.

Minimum investment is $100,000 with a 2-and-20 fee structure.

JP Morgan has been appointed as clearing broker and Fortis Prime Fund Solutions is the fund administrator. Ernst & Young is auditing the fund and legal advice is provided by Simmons & Simmons in London and Maples and Calder in the Cayman Islands.

Armajaro Asset Management now manages four commodity hedge funds and an emerging markets hedge fund with combined assets under management of over $1.5 billion.

All the funds achieved positive double digit returns in 2009.