COMMODITY STRATEGY
HOW TO PROFIT FROM COMMODITIES
Seasonax Capital has developed a strategy that captures momentum in specific commodities and profits from their performance over the course of the entire calendar year.
WHY INVEST IN COMMODITIES?
The STAY-C commodities strategy is a strategic alternative in an environment of low interest rates, negative bond yields and mature bull markets in equities.
Commodity prices have not increased much despite inflation. In comparison to other asset classes, they are still lagging behind and therefore represent an excellent investment opportunity.
Other factors such as an increasing money supply together with economic and population growth and naturally limited resources are creating a solid background for rising commodity prices and are reflected in our strategy.
By adding a 10% commodities allocation to a 40/60 bond/stock portfolio the Sharpe ratio of the portfolio increases.
The strategy provides better diversification: commodities show a low or even negative correlation with other asset classes.
THE ALGORITHMS BEHIND THE STRATEGY
The STAY-C award winning commodity strategy is based on 2 elements:
SELECT
STAY-C invests in individual commodities as soon as their price patterns meet the selection criteria (including robust momentum).
PROTECT
During the financial-market crisis of 2008, STAY-C was largely disinvested and thus proved the effectiveness of the protect algorithm.
LIVE TRACK RECORD
Since its launch in 2007, the STAY-C index has outperformed the Bloomberg benchmark index (BCOM) by almost three times. The calculation was performed by renowned institutions such as Deutsche Boerse (German Stock Exchange).
Furthermore, the Stay-C commodities strategy won several awards in Europe; it was the best- performing quantitative commodities fund ever listed on a German exchange.
- UCITS HEDGE AWARD 2013 for the best performing commodity fund
- €uro Fund Award 2013 in the category resources
Since its launch, the STAY-C index has outperformed the Bloomberg benchmark index (BCOM) by almost three times.
PRODUCTS
We have implemented our algorithms in commodity and equity strategies:
Seasonax
Commodity
Long Only actively managed futures strategy, which aims to participate in the performance of the global commodity markets.
Seasonax
Equity USA
Long Only equity strategy, which aims to generate attractive returns in the US stock market by using award-winning seasonal algorithms.
Seasonax
Equity Europe
Long Only equity strategy, which aims to generate attractive returns in European stock markets by using award-winning seasonal algorithms.
Seasonax
Equity Asia
Long Only equity strategy, which aims to generate attractive returns in Asian stock markets by using award-winning seasonal algorithms.