Sun, Oct 4, 2015
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. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  2. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  3. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  4. Comment - Cash and hedge funds are king[more]

    From For years we've argued that, given heightened uncertainty, a preferred portfolio posture is to barbell between cash allocations, which provide valuation optionality and mitigate unanticipated shocks, and long-short equities hedge funds that reduce "beta", or index risks, while leaving

  5. Europe - Russia has been gold for hedge funds this year[more]

    From Judging by the headlines, Russia may look like a nation in turmoil. Investors, though, don't seem to mind. In fact, for hedge funds, Russia has been one of the biggest and best stories of 2015, turning in the only positive performance among all emerging market strategies and crushing