Wed, May 4, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Actively managed funds fare best in agricultural trading segment

Tuesday, November 12, 2013

amb
Chad Burlet
Benedicte Gravrand, Opalesque Geneva:

"There are not a lot of good ways to participate in the agricultural sector," said a CTA manager during the recent Opalesque Hard Assets Roundtable. "There are some trend followers that have not fared well over time. The long-only strategy is flawed, as is the ETF strategy, and they have generated poor results. There is a very small universe of actively managed agricultural CTAs, and that’s serving us well."

"The primary source of Alpha in our sector is found in spreads and in options," Chad Burlet notes during the Roundtable. "Spreads can be inter-commodity spreads, intra-commodity spreads, like calendar spreads, or inter-exchange spreads; like Kansas City Wheat versus Chicago, or Chicago vs. Minneapolis. Options are a good fit for our fundamental approach because of their longer time horizon. Some of the random noise that occurs in flat price trading is also less of an issue in options."

Burlet is Principal and Chief Trading Officer at Third Street AG Investments, LL, which he and Bob Otter formed in December, 2012. Both are veterans of the grain and soy markets.

Third Street AG Investments runs a fundamental discretionary agricultural trading program with a very narrow focus on corn, wheat, and soybeans. The managers monitor worldwide production, grain flows and consumption and identify dislocations and mis-pricings that take pla......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n