Browsing: Commodities & Natural Resources

Commodities & Natural Resources

Traditional Uses of Commodities in a Diversified Portfolio

Jun 11th, 2021 | Filed under: Featured Post, Newly Added, Commodities & Natural Resources

By Fiona Boal, Head of Commodities & Real Assets, and Jim Wiederhold, Associate Director, Commodities & Real Assets, S&P Dow Jones Indices Commodities may be the building blocks of the real economy, but they have long been viewed as the poor cousin in the investment universe, and often for good reason. UnlikeRead More


A Hot Commodity: Systematic Investing in China

Jun 1st, 2021 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, Hedge Funds, Commodities & Natural Resources

By Giuliana Bordigoni, Adrian Chang, Adi Mackic, Sophie Rossini, and Kate Straker Introduction Diversification is the cornerstone of a systematic manager’s strategies: greater diversification means a larger pool from which to capture different return streams. Driven by recent rule changes, China offers access to some of the world’s most liquid markets:Read More


Ignoring Energy Transition Realities, Part I

May 21st, 2021 | Filed under: Featured Post, Newly Added, ESG, Commodities & Natural Resources

By Goehring & Rozecwajg We are making a terrible mistake when it comes to future energy policies. In previous letters, we have touched upon the challenges of the so-called “energy transition.” Today, we will explain in detail the imminent harm awaiting investors and policy makers who fail to acknowledge certainRead More


Worried About Inflation? Get Real

Apr 23rd, 2021 | Filed under: Featured Post, Newly Added, Asset Allocation, Commodities & Natural Resources

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy, CAIA Association Last July, we discussed Socially Distanced Inflation with the idea that COVID would have a negative effect on employment and output, which would lead to increased business failures. A record amount of monetary and fiscal stimulus combinedRead More


What About Beta? | Bitcoin and Ethereum Derivatives – A First Step for Institutions?

Mar 23rd, 2021 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, What About Beta?, Commodities & Natural Resources

By Keith Black, PhD, CFA, CAIA, FDP, Managing Director of Content Strategy, CAIA Association In February 2020, IPE asked whether the $200 billion cryptocurrency market was of interest to institutional investors. While the premise was tempting, few institutions made the allocation, due to challenges and uncertainty in custody while questioningRead More


Real Estate Debt and Sustainability

Mar 14th, 2021 | Filed under: Featured Post, Real Estate, Infrastructure, Manager Selection, ESG, Commodities & Natural Resources

A new report from two executives at Aviva Investors, the global asset manager that is part of the UK-based Aviva Group, looks at real estate debt as a way to play the transition to a low-emissions or even a no-net-emissions world. One key source of value here is that theRead More


The Rationale for Investing in Exotic Alternative Investments Today

Feb 9th, 2021 | Filed under: State of the Industry, Featured Post, Newly Added, Commodities & Natural Resources

By Kevin R. Mirabile, CPA, DPS  The current rationale for investing in exotic alternative investments is based on a combination of stand-alone returns, risks and portfolio effects. Today, exotic alternative investments offer investors an opportunity to achieve many of the stand-alone and portfolio benefits that hedge funds and other typesRead More


Systemic Impact and ESG Investing in Smart Cities

Feb 2nd, 2021 | Filed under: Data Science & AI, State of the Industry, Featured Post, Infrastructure, Newly Added, ESG, Commodities & Natural Resources

What is a smart city? By definition, a smart city is “a city that uses technology and data purposefully to make better decisions and deliver better quality of life.”  Technology is intricately embedded into the everyday life of city dwellers through network devices, applications, and widely distributed usage.  The combinationRead More


Lenders: Project Financing Availability is Key to EGD’s Success

Jan 24th, 2021 | Filed under: State of the Industry, Featured Post, Real Estate, Infrastructure, Newly Added, ESG, Commodities & Natural Resources

EUPOPEAN GREEN DEAL – TOWARDS A ZERO-CARBON URBAN ENVIRONMENT, Part 5 By Christos Angelis, CAIA – Director at Masterdam This is the fifth article in this series. For Part 1, please click here. LENDERS TO PLAY A MAJOR ROLE IN THE SUCCESS OF EGD As discussed in previous articles, theRead More


ESG and Its Growing Influence in the Timberland Investment Sector

Dec 17th, 2020 | Filed under: Featured Post, Private Equity, Newly Added, ESG, Commodities & Natural Resources

By Chung-Hong Fu, Managing Director, Research Timberland Investment Resources, LLC As interest in Environmental, Social and Governance (ESG) issues increases, investors and investment managers are working to define and refine what ESG means and what ESG engagement looks like in the context of their portfolios and the asset classes inRead More


How Challenges in Commodity Trade Finance are Creating New Investment Opportunities

Dec 6th, 2020 | Filed under: Emerging Asset Classes, State of the Industry, Featured Post, Newly Added, Commodities & Natural Resources

By Annie Yung 2020 certainly has had many challenges across markets, and trade finance has been no exception. Trade finance is critical for global companies for support of operations and to enable the expansion of trade and growth. The COVID-19 pandemic has fueled a growing funding gap and has exposedRead More


European Green Deal: Towards a Zero-Carbon Urban Environment (Part 4)

Dec 3rd, 2020 | Filed under: Emerging Asset Classes, State of the Industry, Featured Post, Real Estate, Infrastructure, Newly Added, ESG, Commodities & Natural Resources

Part 4: Real Estate Developers: Hostage of Trophy Hunting Investors & Certification Standards? By Christos Angelis, CAIA – Director at Masterdam This is the fourth article in this series. Please read Part 1, Part 2 and Part 3. THE RELEVANCE OF THE EUROPEAN GREEN DEAL FOR DEVELOPERS Real estate development in the EuropeanRead More


Measuring the Inflation Risk of Three ‘Inflation-Hedges’

Nov 24th, 2020 | Filed under: Featured Post, Newly Added, Asset Allocation, Risk Management, Commodities & Natural Resources

By Doris Bao, FRM and Alex Botte, CFA, CAIA, Client Solutions Research team at Two Sigma In our previous post on inflation, we covered how the Local Inflation risk factor in Venn, Two Sigma’s risk analytics platform, is constructed and we reviewed its historical performance. The primary conclusion was thatRead More


European Green Deal: Towards a Zero-Carbon Urban Environment (Part 3)

Nov 5th, 2020 | Filed under: Featured Post, Real Estate, Newly Added, ESG, Commodities & Natural Resources

Part 3: Real Estate Tenants: Free Riders or Simply Uninformed? CHRISTOS ANGELIS, CAIA – Director at Masterdam This is the third article in this series. Please read Part 1 & Part 2.  BLAME GAME BETWEEN TENANTS & LANDLORDS The European Green Deal (EGD)[i] is expected to be a catalyst forRead More


Assessing the Impact of COVID-19 Across Real Estate Sectors

Nov 1st, 2020 | Filed under: Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

By Wu Guowei Jack, CFA – Director of Content, APAC at CAIA Association The COVID-19 pandemic has had a devasting toll on human life, and has impacted economies and industries globally. The effect on real estate is significant, as real estate can be considered a service sector that fulfills end-userRead More


Three Sources of Alpha: A Call for Small Manager Investment

Oct 13th, 2020 | Filed under: Featured Post, Private Equity, Newly Added, Asset Allocation, Risk Management, Hedge Funds, Commodities & Natural Resources

By Karl Rogers, ACE Capital Investments I recently finished a multi-strategy fund of hedge funds build for an institution where I focused on three sources of alpha: small manager, equities and commodities. Small Manager Alpha Given that “small” managers have been found to outperform their larger peers[1], why do manyRead More


European Green Deal: Towards a Zero-carbon Urban Environment

Oct 8th, 2020 | Filed under: State of the Industry, Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

Part 2: Real Estate Owners: Moral Obligation versus Economic Benefit CHRISTOS ANGELIS, CAIA – Director at Masterdam This is the second article in this series. For Part 1, please click here. EUROPEAN RENOVATION WAVE The European Green Deal (EGD)[i] is paving the way for stricter regulations and more applied measuresRead More


Missed Rents’ Impact on Real Estate

Sep 24th, 2020 | Filed under: Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

By Niel Harmse & Bryan Reid of MSCI Real Estate Lockdowns and social distancing have impacted many tenant businesses, resulting in an unprecedented number of requests for rental relief, stressing real estate rental income streams. For equity investors, income returns have weakened, despite softening asset values. Recent income returns mayRead More


The Coming Oil Crisis

Aug 13th, 2020 | Filed under: Featured Post, Newly Added, Commodities & Natural Resources

Excerpted of Goehring & Rozencwajg, Natural Resource Investors We are on the cusp of a global energy crisis. Like most crises, the fundamental causes for this crisis been brewing for several years but have lacked a catalyst to bring them to the attention of the public or to the averageRead More


Canadian Farmland – Feeding the World in a Changing Climate

Jul 19th, 2020 | Filed under: Featured Post, Newly Added, Commodities & Natural Resources

By Joelle Faulkner, Founder and CEO & Max Pentland, Analyst, Area One Farms As our climate and population are rapidly changing on a global scale, Canadian farmland appears to be  an increasingly attractive investment. Rising populations and temperatures will likely cause farmland values in Canada to appreciate, driven by demand for agriculturalRead More


Oil Prices Went Where?

Apr 26th, 2020 | Filed under: State of the Industry, Featured Post, Newly Added, Commodities & Natural Resources

By Adam A. Rozencwajg, CFA, Managing Partner, Geohring & Rozencwajg Oil prices joined bond yields in doing the unthinkable: trading at negative levels. In the case of oil, the West Texas Intermediate (WTI) May 2020 contract reached a low of -$40.32 at 2:24 pm before rallying back to finish the day atRead More


Diversification Strikes Back!

Mar 13th, 2020 | Filed under: State of the Industry, Real Estate, Private Equity, Newly Added, Asset Allocation, Risk Management, Hedge Funds, Commodities & Natural Resources

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association, and Keith Black, PhD, CFA, CAIA, FDP, Managing Director, Content Strategy at CAIA Association “Diversification is back” – now that’s not a phrase we’ve heard in a long time…long time. Considering recent market performance, we thought thatRead More


Real Assets ‘Inception:’ Diversification within Diversification

Feb 27th, 2020 | Filed under: State of the Industry, Real Estate, Manager Selection, Newly Added, Asset Allocation, Risk Management, Commodities & Natural Resources

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Excerpted from the Alternative Investment Analyst Review, Volume 8, Issue 1 The Alternative Investment Analyst Review is the official publication of the CAIA Association. Access to the most current issue is an exclusive benefit of CAIA MembershipRead More


Alpha Comes in Waves

Feb 20th, 2020 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, Asset Allocation, Hedge Funds, Commodities & Natural Resources

The brief history of replication funds may already be divided into three waves, the third of which is still in formation. The first wave was about democratization: putting hedge fund strategies in the hands of people who cannot meet the accreditation requirements to invest in hedge funds proper, or ofRead More


Making Your Portfolio About #Goals

Feb 13th, 2020 | Filed under: State of the Industry, Access to Alternatives, Real Estate, Manager Selection, Newly Added, Asset Allocation, Hedge Funds, Commodities & Natural Resources

By Aaron Filbeck, CFA, CAIA, CIPM, Associate Director, Content Development at CAIA Association Central Issue of the Paper If you’re a social media junkie, you have probably seen “#goals” in your timeline. In most cases, the hashtag is referring to an attractive couple or an aesthetically pleasing plate of food.Read More


Biofuels and Deforestation: A CSR/ESG Cautionary Tale

Feb 9th, 2020 | Filed under: State of the Industry, Featured Post, Newly Added, ESG, Commodities & Natural Resources

The Republic of France, in March 2019, decided that it would no longer consider fuel made from palm oil to be a “biofuel,” effective as of January 2020. So that  redefinition is now in effect. Meanwhile, the EU recently set tariffs on palm oil coming in from Indonesia or Malaysia:Read More


Hedge Fund Investors Respond to the Turning of the Business Cycle

Jan 13th, 2020 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, Hedge Funds, Commodities & Natural Resources

It is reasonable to expect that a diversified hedge fund portfolio will make more modest returns in 2020 than it did in 2019, according to Agecroft Partners, which has done its usual January crystal-ball gazing on the new year, looking for the top industry trends and how they may playRead More


Simpler Rules for Commodity Pools

Jan 9th, 2020 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, Commodities & Natural Resources

The Commodity Futures Trading Commission has changed the rules for the managers of commodity pools. The new regulations, approved in November and published in the Federal Register for Dec. 10, take effect on Thursday, January 9, 2020. Some key points about these changes: They have codified Family Office No-Action Letters,Read More


Considering Investing in Qualified Opportunity Funds? Caveat Emptor

Dec 25th, 2019 | Filed under: State of the Industry, Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

By David O’Brien, CFP, CAIA The Opportunity Zones Program, enacted as part of the Tax Cuts and Jobs Act of 2017, has great potential to create jobs and spur economic growth while creating a potentially powerful tax strategy for investors and asset managers. The Opportunity Zone Program is designed toRead More


Commodities:Waiting for a Paradigm Shift

Dec 25th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Asset Allocation, Hedge Funds, Commodities & Natural Resources

Ray Dalio, in reference to the current financial scene, with its long period of expansion over more than a decade has said, “This set of circumstances is unsustainable and certainly can no longer be pushed…[which] is why I believe that the world is approaching a big paradigm shift.” Dalio hasRead More


Greenfields and Brownfields: Asian Investors Backing Infrastructure Investments

Dec 22nd, 2019 | Filed under: State of the Industry, Featured Post, Infrastructure, Private Debt, Newly Added, Hedge Funds, Commodities & Natural Resources

The Asian Infrastructure Investment Bank has taken a 30% stake in Bayfront Infrastructure Management. Clifford Capital, with the backing of the government of Singapore, has the other 70%. They have created Bayfront (with a combined capitalization of $180 million) to mobilize  a pool of infrastructure investors in the expectation thatRead More


The Imminent Demise of the LNG/Crude Oil Link

Dec 19th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Hedge Funds, Commodities & Natural Resources

Liquified natural gas has long been sold through long-term contracts that are benchmarked to the price of crude oil. This makes a certain intuitive sense. The two commodities are in many contexts substitutes, so that one would expect a rise in the prices of one to inspire an echoing riseRead More


Africa: Alpha for the Bold

Dec 15th, 2019 | Filed under: State of the Industry, Featured Post, Infrastructure, Newly Added, Asset Allocation, Commodities & Natural Resources

The CFA Institute, in conjunction with the African Stock Exchanges Association (ASEA), has put together a book on the challenges and opportunities in the African capital markets. In Africa as elsewhere, fortune favors the bold. For example—and this is not an example from the ASEA and CFA Institute’s book—the EnkoRead More


Alternative Investments: Investing By Numbers

Nov 19th, 2019 | Filed under: Data Science & AI, State of the Industry, Access to Alternatives, Featured Post, Real Estate, Private Equity, Private Debt, Newly Added, Risk Management, Hedge Funds, Commodities & Natural Resources

What’s in the future for alternative investments asset management? A new publication from Ernst & Young, London, contends that allocations to alternative investments and are “robust,” but that there is an important shift underway in favor of private equity and at the expense of hedge funds. In 2018, 40% ofRead More


The Case Against REITs

Nov 9th, 2019 | Filed under: State of the Industry, Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION Surveys often reveal investor behaviour that is challenging to understand. For example, Preqin’s Alternative Investor Outlook for H2 2019 highlighted the following: 65% of institutional investors believe that real estate is overvalued and a correction likely to occur in 2019, 2020, or beyond.Read More


Blenheim Closes, Ushering in a New Era in Commodities

Oct 31st, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Hedge Funds, Commodities & Natural Resources

Willem Kooyker is folding up his tent at Blenheim Capital, the commodities-focused hedge fund headquartered in an office park in Berkeley Heights, N.J. Kooyker is a legend. In 1981, he went to work at Commodities Corp., Princeton, N.J., where he was a peer of Paul Tudor Jones, Louis Bacon, andRead More


AIMA: Looking at the Canadian Landscape

Oct 22nd, 2019 | Filed under: Data Science & AI, State of the Industry, Access to Alternatives, Featured Post, Infrastructure, Newly Added, Hedge Funds, Commodities & Natural Resources

The Alternative Investment Management Association first opened a branch in Canada in 2003. In recent days, AIMA has posted a report on what it calls the “landscape.” It doesn’t mean the Rockies. It means the lay of the land for alternative investments in that country. AIMA’s report looks at aRead More


Eurekahedge: The Return of Alpha

Sep 29th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Hedge Funds, Commodities & Natural Resources

The Eurekahedge Hedge Fund Index was up in August, 0.17%, easily outperforming the global equity market, as measured by MSCI ACWI, which was down 2.37%. The August number brings the Eurekahedge HFI’s year-to-date result to 6.58%. Approximately 32.6% of the funds Eurekahedge tracks are in double-digits (positive) territory for theRead More


‘Greenwashing:’ Why the Glass is Half Full

Sep 19th, 2019 | Filed under: Emerging Asset Classes, State of the Industry, Featured Post, Newly Added, ESG, Commodities & Natural Resources

The term “greenwashing” is not a compliment. It isn’t supposed to be a good thing. Greenwashing means the re-spraying of old products and services so that they seem to comply with standards for socially responsible investment. Many investors want to put their money to work in ways that reflect theirRead More


Boone Pickens, A Trailblazer, Passes On

Sep 17th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, ESG, Hedge Funds, Commodities & Natural Resources

T. Boone Pickens died quietly at home in Dallas, Texas on Sept. 11, 2019. In his long career Pickens did a good deal to give the current hedge fund industry, as well as the broader asset management industry and the energy commodities markets, their character, in a life that sometimesRead More


PORTFOLIO PROTECTION VIA MANAGED FUTURES LIQUID ALTS?

Sep 8th, 2019 | Filed under: State of the Industry, Access to Alternatives, Featured Post, Newly Added, Asset Allocation, Hedge Funds, Commodities & Natural Resources

By Nicolas Rabener of FactorResearch (@FactorResearch) INTRODUCTION The mafia and the hedge fund industry share some characteristics. Both are powerful, non-transparent, and create little value for society. Naturally the mafia is a criminal organization while the only “criminal” element of hedge funds are the high fees they are charging forRead More


Is it Time for the Gold Bug to Bite?

Aug 27th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Asset Allocation, Commodities & Natural Resources

Diane Merritt, of the Closed-End Fund Association (CEF) spoke recently with Axel Merk, of Merk Investments, about precious metals as part of a portfolio, and specifically the role these metals can play late in the business cycle: which, according to a rather broad consensus, is where we now are. TheRead More


Real Estate Investing: From Farmland to Berlin

Aug 18th, 2019 | Filed under: State of the Industry, Featured Post, Real Estate, Newly Added, Commodities & Natural Resources

A new study from Nuveen looks at how to assess properly the value of real estate and farmland. There are four key points: That a “doubleness” of vision is necessary. You need to take a macro view of the investment world and a micro view of the farms and otherRead More


Equity Differential: A Factor in Currency Returns

Jul 23rd, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Asset Allocation, Commodities & Natural Resources

A recent publication by two executives of State Street Associates identifies a new factor in currency turns, which it calls the “equity differential.” In effect, it argues for the viability of a trading strategy based on this factor. The paper argues that the differential in trailing equity market performance stronglyRead More


Restrictions on Pension Plan Investments: A Global Survey

Jul 16th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Asset Allocation, Hedge Funds, Commodities & Natural Resources

A new report from the Organization for Economic Cooperation and Development surveys the main quantitative investment restrictions to which pension funds and other pension providers are subject in both OECD countries and a selection of International Organization of Pension Supervisors’ (IOPS) member countries. It reminds us of the general desireRead More


Oil & Gas: Where is the Capital Flowing?

Jul 7th, 2019 | Filed under: State of the Industry, Featured Post, Private Equity, Newly Added, Commodities & Natural Resources

The last two years have seen record low levels of mergers and acquisitions activity in the oil and gas sector in the United States. There are other signs of lassitude in the field: a record low volume of PE deals, (more of that in a moment), and only six initialRead More


The Dangers and Attractions of Infrastructure Investing

Jul 4th, 2019 | Filed under: State of the Industry, Featured Post, Infrastructure, Newly Added, Commodities & Natural Resources

An arm of Brookfield Asset Management, Brookfield Infrastructure, announced that it is leading a group of investors to buy Genesee & Wyoming for a cash payment of $112 per share, a premium of nearly 40% over the pre-announcement stock price. This is a big infrastructure play. G&W is a freightRead More


Hedge Fund Index Backslides in May; Remains in Positive Territory

Jun 25th, 2019 | Filed under: State of the Industry, Featured Post, Manager Selection, Newly Added, Hedge Funds, Commodities & Natural Resources

Red ink spoiled an otherwise positive 2019 for he Eurekahedge Hedge Fund Index. The decline of 0.71% leaves the year-to-date performance still well up, at +4.32%. Approximately 41.6% of the funds Eurekahedge tracks were in the black for the month. And 15% have generated double-digit gains year-to-date. North America-mandated hedgeRead More


Crop Protection and Inputs Management: Growing Investments in AgTech

Jun 20th, 2019 | Filed under: State of the Industry, Featured Post, Private Equity, Private Debt, Newly Added, Commodities & Natural Resources

The agricultural sector is under pressure from several directions, including depressed commodity prices, increased regulation, climate change, and changes in consumer tastes. This pressure creates a demand for technological progress, and that in turn creates a market for agtech. Two years ago, Finisterre Ventures and Pitchbook combined their data gatheringRead More


The Value of Speculation Limits, or Lack Thereof

Jun 18th, 2019 | Filed under: State of the Industry, Featured Post, Newly Added, Hedge Funds, Commodities & Natural Resources

CFTC Commissioner Daniel Berkovitz recently spoke to the FIA Commodities Symposium, in Houston, Texas, about the reduction of systemic risks and the strengthening of market integrity under the Dodd-Frank Act. He gave the usual disclaimer, that the views he expressed in this address were his own not those of theRead More