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“Commodities is a notoriously difficult and misunderstood asset class to invest in because of its diversity and fragmentation, its cyclicality, and its capacity constraints”, said CEO Aurelia Lamorre-Cargill. “Argon is really a 2.0 commodities firm in that no one has rethought the commodities investment model like we have in order to address these issues on behalf of investors. While many commodities portfolio managers tend to operate in silos, our framework promotes cross-asset information flows, leading to optimal investment diversification within a rigorous top-down risk framework.”

With this in mind, Argon has established the new position of Chief Investment Risk Officer, a role held by Marcos Bueno, to whom all portfolio managers will report. This building-block model has total separation of functions enabling portfolio managers to focus exclusively on strategy performance, not fund marketing or business management.

“We’ve created a unique structure for the commodities space, comprising niche, in-house portfolio managers each running separate strategies to generate a differentiated return profile, independent of any one person, market, style or product, and underpinned by a proven risk management framework”, said Chief Investment Risk Officer (CIRO) Marcos Bueno. “We see this approach as the ‘Moneyball’ of commodities as we strive to unearth different skillsets that complement each other, for the long-term benefit of investors.”

Bueno continues: “Argon isn’t a culture of reckless commodity traders, which is a common misconception of the asset class in general; it’s a risk-managed, process-oriented philosophy focused on steady, long-term investor benefits with a highly scalable business model. Having personally witnessed various cycles and the changes in the commodities landscape, I’m very excited for what the future of our space holds.”

The firm is seeking to raise $400-500mm with six underlying portfolio managers for its inaugural offering.

ABOUT ARGON CAPITAL MANAGEMENT

Co-founded by industry veterans Aurelia Lamorre-Cargill, previously of Barclays Capital and JPMorgan, and Marcos Bueno, previously of Graham Capital, JPMorgan and Goldman Sachs, Argon Capital Management is a multi-strategy, commodity-centric investment firm focused on market access, strategy diversification, and long-term performance based on a rigorous risk management culture.

Argon is building a team of independent, in-house portfolio managers running a separate series of commodity-centric strategies within one single fund, sharing a common risk management framework. Depending on the strategy and PM, the focus could be on the futures, equity, credit markets, or a mix of different asset classes. The Argon model is to attract the right commodity talent, empower them to pursue optimal risk-adjusted performance, and mitigate negative performance through a firm-wide, self-policing risk management process. Moreover, Argon believes in complete alignment of interests between the firm and its investors - the firm will bear the netting risk among the strategies - as well as in transparency, which will include total risk exposure and individual strategy performance.

Press release

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