COMMODITY STRATEGY
HOW TO PROFIT FROM COMMODITIES
Seasonax Capital has developed a strategy that captures momentum in specific commodities and profits from their performance over the course of the entire calendar year.
WHY INVEST IN COMMODITIES?
The STAY-C commodities strategy is a strategic alternative in an environment of low interest rates, negative bond yields and mature bull markets in equities.
Commodity prices have not increased much despite inflation. In comparison to other asset classes, they are still lagging behind and therefore represent an excellent investment opportunity.
Other factors such as an increasing money supply together with economic and population growth and naturally limited resources are creating a solid background for rising commodity prices and are reflected in our strategy.
By adding a 10% commodities allocation to a 40/60 bond/stock portfolio the Sharpe ratio of the portfolio increases.
The strategy provides better diversification: commodities show a low or even negative correlation with other asset classes.