Sun, Mar 29, 2015
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner