Sun, Mar 18, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Diapason launches commodity investment platform Virtuoso

Wednesday, July 03, 2013
Opalesque Industry Update - Diapason Commodities Management, one of the largest independent commodity investment managers globally, has introduced its new Smart Beta commodity investment product - Virtuoso - which is being unveiled to a series of institutional investors and consultants in the US and Europe from July 2013.

Virtuoso is a fully customizable investment platform designed to generate sustainable alpha above commodity benchmark investment, including the Diapason Commodity Index® (DCI®) or any other investable commodity index - for example the widely-used Dow Jones-UBS Commodity IndexSM(DJ-UBSCISM). The platform targets performance of four to six percent above the chosen benchmark depending on portfolio constraints and is designed for pension funds, endowments, insurance firms and other institutional investors all of which allocate to the commodity asset class via benchmark indices. In times of increased market volatility institutions need a more sophisticated way of managing commodity exposure, and this innovative investment platform addresses this need.

Commodity benchmark investment is enhanced in two ways with Virtuoso. Firstly by incorporating a proprietary curve optimization algorithm, which maximizes the roll return implicit in commodity index investment. Secondly by adding a tactical allocation overlay which uses fundamental and market sentiment indicators including relative inventory levels and macroeconomic data, as well as the positioning of market participants on underlying commodities to identify extreme conditions and to anticipate market reversals. Institutions are able to then adapt the program based on investor defined portfolio constraints, for example maximum leverage or short exposure can be tailored to suit.

Mark McDonnell, Managing Director of Diapason commented "Commodity investment is evolving and remains a fundamental component of institutional investment portfolios - as a diversification tool, as a hedge against inflation and as a source of tangible asset performance. Our Virtuoso Smart Beta platform has been developed based on client demand from investors who want a more sophisticated approach to commodity index investment and who are looking to exploit the return potential of the asset class given the current stage of the business cycle".

Press release


What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Performance - Hedge fund mojo is back with investor hopes at six-year high, These hedge funds produce the most consistently great results[more]

    Hedge fund mojo is back with investor hopes at six-year high From Hedge funds on the heels of a surprisingly strong performance in 2017 are raising hopes for an encore. Investors expect their managers to return 8.5 percent in 2018, according to a Credit Suisse Group AG sur

  2. Investing - Hedge funds amass big bets against world's leading advertisers, Investor Elliott Management buys tiny stake in Wipro[more]

    Hedge funds amass big bets against world's leading advertisers From Hedge funds have amassed bearish bets of more than $3bn against the world's largest advertising companies in an attempt to profit as the industry undergoes ongoing wrenching disruption and slowing growth. Funds i

  3. News Briefs - Investcorp to launch a $100 million PE fund for Omani pension funds[more]

    Bahrain-based investment firm Investcorp will soon launch a $100 million fund dedicated to Oman's Pension Funds as part of its investment plan. 'The Opportunities Fund' will be focused on private equity investments in the U.S. and Europe and will target mid-sized companies across a broad range of se

  4. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  5. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t