Galena Plans to Start $500 Million Energy Hedge Fund

Galena Asset Management Ltd., the fund unit of closely held commodities trader Trafigura Beheer BV, plans to raise at least $500 million for an energy hedge fund that will start in the first half of next year.

The company's $500 million metals hedge fund returned about 10 percent in the first nine months of the year, Chief Executive Officer Jeremy Weir said today in an interview in London. His metals hedge fund trades derivatives and the energy fund will be based on the same model, he said.

``Primarily it's going to be an oil and gas fund,'' Weir said. Galena's four existing funds manage a combined $750 million, he said.