Its Barclays Capital Combats (commodity-based alpha trading strategy) Fund, a market neutral proposition, was originally launched in February 2009 and currently has $230m in assets under management.
Managed by the company’s funds and advisory team, it targets positive returns by taking long and short positions in a diversified basket of single commodities using pairs trades to balance sector and commodity weightings.
It takes a 200% long position in the Barclays Momentum Alpha Strategy and a strategy that goes long on the futures curve of each constituent commodity that has historically delivered the highest outperformance.
It aims for a market neutral position and zero beta risk by taking a 200% short position at the front of the futures curve of each constituent commodity sector.
The long and short positions are then rebalanced each month.
“The fund aims to generate different sources of potential alpha from a range of commodity sectors in order to produce stable, risk-adjusted returns,” according to Barclays’ Nathan Bance, director, UK investor solutions.
