POLARSTAR MANAGEMENT

SPECIALIST COMMODITY FUND MANAGER

PolarStar Management applies diversified relative-value investment strategies to the global agricultural and energy commodity markets.

APPLIED RISK MITIGATION

We combine over 100 years of commodity market experience in our risk-first approach to capital protection in the investment process and the meticulous construction of our portfolios.

ALPHA CREATION

We look to generate pure alpha in the capturing of changes in relative prices between related commodities, using listed derivatives on global exchanges. The portfolio excludes un-hedged directional trades, which ensures the fund remains protected against systemic movements in the underlying commodity markets.

INVESTMENT METHODOLOGY

Trade themes are founded on supply and demand imbalances in the underlying physical agricultural and energy commodity markets, driven by fluctuations in the annual consumption and production of these commodities. We look to capture the returns of these reoccurring anomalies in our predefined set of relative intra-commodity relationships (long and short the same/similar commodities in different jurisdictions/exchanges) and inter-commodity calendar spreads (long and short in different time durations of the same commodity). The team’s merged quantitative and fundamental skills are combined in the analysis and refinement of our trade opportunities

RETURN PROFILE

These types of market-neutral trades result in portfolio returns that are uncorrelated to commodity markets, CTAs, hedge funds, global equity markets and macroeconomic changes. Target return is 15% to 20% p.a.

ALPHA CREATION

We look to generate pure alpha in the capturing of changes in relative prices between related commodities, using listed derivatives on global exchanges. The portfolio excludes un-hedged directional trades, which ensures the fund remains protected against systemic movements in the underlying commodity markets.