Sun, Jul 3, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Drury Capital trend program marks 25 years

Wednesday, May 18, 2022
Opalesque Industry Update - US-based CTA Drury Capital this month marks 25 years of trading its flagship Diversified Trend-Following Program, as it continues its record of favorable performance. In the course of 25 years the Program has confronted many historical shock waves to hit the global economy.

The strategy was launched in 1997 by commodities trader and analyst Bernard Drury. It was designed with a focus on the importance of commodities in the global economy, including their vulnerability to shocks and their interaction with financial markets. The Program has delivered favorable results over 25 years.

In addition to performing well in times of growth, the Program has shown itself to be resilient through hardship as well. The Program managed to survive the dot-com bubble (up 15.8% in 2000) and even to thrive through the subprime mortgage crisis (up 75.7% in 2008). More recently, the Program has been successful in navigating the pandemic and its aftermath, including the fiscal and monetary policy responses, as well as the ongoing global supply chain disruptions from both the pandemic and the war in Ukraine (up 12.9% 2020, up 26.3% 2021, up 29.7% YTD through April).

Bernard Drury said, "Through all these 25 years, the trading approach has been characterized by flexibility, applied with discipline. We have a great team, and while we are pleased with the results achieved so far, we are always looking for ways to improve the risk- adjusted rates of return that we provide our clients, with the aim of offering a low- correlation return stream that may add value to their portfolios."

He added, "Before launching the systematic diversified program, I had spent years as a commodity trader and analyst, having begun my career at Louis Dreyfus as a grain trader. From this experience, I brought to the design of our trading program an awareness of the importance of commodities in the global economy, including their vulnerability to shocks. Our research suggested that consistent application of an array of trading techniques across a broad portfolio could produce favorable results over long time periods even amidst ever- changing market circumstances.

"To date, that research appears to have been validated as the Program has managed to navigate through vast global changes. When the Program started in 1997, the global population was 5.9 billion, China represented only 3% of global GDP, gold traded at $370 an ounce, and the S&P 500 was only 770. Today, the global population has soared to 7.9 billion, China now accounts for 18% of global GDP, gold is over $1800 an ounce, and the S&P is near 4000.

"In the energy sector, the Program started when fracking for oil and gas was limited in scope, whereas it now contributes about half of US crude production and an even higher percentage (62%) of natural gas production. In foreign exchange, the Euro had not yet been launched (Jan 1, 1999), and Britain was still in the EU (Brexit 2016). In agriculture, Brazilian production of soybeans has more than quadrupled (from 32 MMT to 149 MMT)."

Bill Miller, Head of Global Sales, said, "A track record of 25 years is testimony to our extensive experience in the field and flexible trading strategy. We continue to be nimble and to hone in on areas of diversification that may offset many shocks - this helps us to make returns in the midst of roller-coaster swings in market activity."

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. Alts managers sitting on over $2.5tn+ of dry powder[more]

    Laxman Pai, Opalesque Asia: In the current rising interest rate environment, investment activity in the private markets has continued to grow, revealed a study. "With alts managers sitting on over $2.5T+ of dry powder and continuing to enjoy premium valuations and interest rates on a prec

  2. Opalesque Exclusive: Hong Kong manager expects additional tailwind in Asian markets[more]

    B. G., Opalesque Geneva: The Asia equity markets have not been at their best so far this year, with the MSCI Asia index down almost 13% YTD, but many managers remain buoyant about the region, as in

  3. Opalesque Exclusive: Emerging markets persist despite headwinds[more]

    Bailey McCann, Opalesque New York: Emerging markets have been under significant pressure since the start of the year, but there are some nascent trends that suggest that things could be getting better. Emerging markets firm Gramercy Fund Management recently released its third quarter outlook and

  4. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year

  5. Other Voices: ESG exuberance is at all-time highs. But will investors buy?[more]

    As investors increase their focus on mission-based investing, they continue to grapple with ESG and what it means to them. By David Shalom, Director of Capital Introductions at Pershing Innovation. New investment solutions. That's how managers deliver value and attract new inve