Opalesque Industry Update - The bull run in commodities is set to continue for at least another five years, offering long-only investors better growth potential than any other asset class, according to Dighton Capital Management, one of the world’s leading managed futures fund managers.|
Bonds and property are all hitting headwinds while Dighton believes equities are set for a major correction toward the end of 2011 or early 2012 led by the developed markets.
Alex Moiseev, Principal and Chief Investment Officer, Dighton Capital Management said: “Long-only investors should just own commodities across the board. There is nothing else that is worthwhile out there. Equities in some emerging markets do offer potential but they represent unknown territory because of the political factors.”
Dighton believes that fears over the real value of money resulting from excessive quantitative easing and consistent devaluing of currencies by many countries will drive up prices of precious metals while growing demand from emerging market economies will raise prices of base metals, soft commodities and oil.
Alex Moiseev added: “There are major lifestyle changes in emerging markets that are putting massive upside pressure on commodities, even compared with just a few years ago, but we are not seeing much increase in production. This is particularly true of oil, which I expect will go to $200 a barrel or more in the next two or three years. The ongoing devaluation of the dollar will only support nominal prices of oil and other commodities.
“In such an environment, investors should be looking to asset managers who can trade long and short across all the asset classes, and especially those who can effectively exploit the bull run in commodities.”
While US equities enjoyed a rally last year that will likely continue in 2011, Dighton believes much of the earnings uplifts have been driven by inflationary pressures rather than real economic growth and that quantitative easing is merely postponing the emergence of real structural economic problems. The failure of the S&P 500 to consistently breach the 1500 barrier will then lead to an eventual sell-off in US equities in the medium term that will hit stockmarkets around the world. Emerging markets will be quicker to recover than their developed counterparts.
Dighton Capital Management has been operating since 2003. It has a consistently attractive record of delivering high absolute returns, high liquidity and transparency, as well as low correlation with equities and bonds.
About Dighton Capital Management
Dighton Capital Management is an established alternative investment manager providing superior, non-correlated alternative investment products to institutional and private investors. The company was established in 2003 and currently manages three funds. AUM are in excess of US$230 million. It has offices in the United States, Switzerland and the Cayman Islands.
Dighton offers two investment programmes at present based on Managed Futures. The first is offered through the Dighton Balanced and Dighton Aggressive Segregated Portfolio (ASP). The second program is the Dighton Dynamic Allocation MSP. Dighton’s products are domiciled in the Cayman Islands.
The Dighton Aggressive Segregated Portfolio (ASP) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The strategy is developed by Mr. A. Moisseev who has been a Futures trader since 1992. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The Fund manager trades on high conviction and his tight selection standards reject 9 out of 10 trading ideas. The fund aims to achieve +50% annualized performance.
The Dighton Balanced Portfolio (Dighton Balanced) is a discretionary CTA which follows a Global Macro strategy. Trading is done solely on liquid and highly regulated US Futures Markets. The investment ideas are generated by combining fundamental macro and technical analysis, such as pattern recognition, volatility analysis, wave analysis (Elliot Wave), volume and Time cycles. The fund aims to achieve +20% annualized performance with a volatility of 15%. For further information on Dighton Capital Management’s three investment funds visit www.dwwi.ch.