Tano Capital, the $250 million hedge fund and private equity firm founded by Charles Johnson, former co-president of Franklin Templeton Investments, has launched the Tano Global Hard Assets Fund. The long/short strategy rolled out with $80 million on Jan. 4, director James Alexander told AIN.
The fund, managed by Johnson, primarily invests in U.S. hard assets and commodity-related equity. “From a macro standpoint, the fund invests almost exclusively in U.S. equities that are sensitive to global commodities,” Alexander said. If Tano sees growth opportunities in electronic devises in China, the fund will purchase equity in a U.S. copper-producing company, for example. He declined to name any companies the fund is currently invested in.
While Tano Global can purchase commodities via futures and options, the firm prefers to get its commodity exposure through equity stakes. This removes concern over expirations of futures or options contracts, and also takes away the complications of physical delivery of a commodity, Alexander explained. “We like to own the underlying hard asset through equity exposure,” he said. “If you own a percentage of a gold mine, you have direct exposure to the gold. You don’t need to own the gold.”
Its investment minimum is $1 million and fees are 2/20. Morgan Stanley is the prime broker.
Separately, Tano is raising money for a second private equity fund, Tano India Private Equity Fund 2. It will have its first close at $50 million, and its final close at $150 million. It will invest across all sectors in India, including industrials, infrastructure, telecom, engineering, retail, and pharmaceuticals, with the average investment size between $15-25 million. Tano India Private Equity Fund 1 had its final closing at $100 million in 2007, and is 80% invested. Tano also runs a managed futures strategy and a Russian fund.
Johnson founded Tano in 2003. His grandfather, Rupert Johnson, Sr., founded Franklin Templeton as Franklin Distributors in 1947.
—Suzy Kenly