Hedge funds fill gap left by lack of bank-based trade financing

As avenues of traditional trade finance have dried up as a consequence of the banking crisis, hedge funds have seen an opportunity. Jamie Wynn-Williams reports

Until relatively recently the financing of commodity trades has gone through the traditional banking route or trade finance houses. With the onset of the banking crisis and the lack of liquidity in the system, hedge funds have spotted an opportunity.

One company to take advantage of the gap in the market is Heriot Commodities. In June 2007 co-founders Gianfranco Cicogna and Stuart McArthur launched the Heriot African Trade Finance Fund. Cicogna and McArthur had been colleagues for many years and

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