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Alternative Market Briefing

Highlight on energy (7) – Nautical Capital gives exposure to commodities play

Friday, February 26, 2010

By Kirsten Bischoff, Opalesque New York:

As investors return to the financial markets, they come back with a much better understanding of their own portfolios. Many have learned hard lessons about the previously unforeseen market correlations that can exist from asset class to asset class, and some have changed their entire approach to building a portfolio. Instead of viewing investments in terms of separate buckets (i.e. lumping all alternatives together), savvy investors are taking a macro view and evaluating correlations across the entirety of their portfolios to determine risk factors such as market exposures and levels of liquidity.

Because energy investing can be expressed in so many different ways (equity, credit, commodities) it is one of the industries that allow investors the flexibility to find a strategy and investment vehicle that best fits with their larger portfolio. For investors that are looking for exposure to these markets through liquid, commodities investments, New York-based Nautical Capital, provides access to the natural resources and energy markets through a variety of absolute return strategies.

The firm’s systematic product provides a guaranteed exposure of 30% to crude oil and 10% to natural gas (which can be presented as long, short or cash positions). Other products offered by the firm can hold up to 50% in energy strategies.

Investors returning to the m......................

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