Diamonds are a hedge fund's new best friend

Few ideas immediately radiate the thought 'hedge funds' as strongly as the launch of a portfolio from Ixis Corporate & Investment Bank in January, trading various instruments in the carbon emission rights market.

Time will tell whether the European Carbon Fund turns out to be a diamond investment, or approximates the worth of carbon's less-vaulted natural states.

The French bank has not been slow to take the initiative in either case, as the emissions market only opened for business on 1 Janua