The Commodity Alpha Long-Bias Strategy is a dynamic commodity beta strategy that allocates across 27 commodity futures contracts. While commodities are a proven and liquid inflation hedge, they tend to perform poorly in low and benign inflationary environments. The strategy seeks the best of both worlds by combining dynamic, net-long exposure to commodity beta with active long/short commodity positions. When inflation is low and benign, the strategy’s risk budget primarily allocated to a long/short investment approach. When inflation is high and rising, the strategy’s risk budget is primarily allocated to a net-long commodity exposure, augmented by a long/short investment approach. The strategy seeks to improve performance, lower volatility, and reduce drawdowns relative to traditional commodity benchmarks, which may result in a better overall Sharpe ratio.
Please note that all investment strategies involve risk.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.