Thu, Nov 27, 2014
A A A
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

bc

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. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to