Sat, Feb 28, 2015
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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie