Galtere’s commodity-based global macro strategy levers the firm’s commodity expertise and provides a more concentrated real-asset portfolio complemented by opportunistic FX/Rates. This structural commodity exposure is particularly suited for clients with a longer-term horizon, over which they should see attractive risk-adjusted returns driven by real assets without a high correlation to commodity indices. The strategy employs fundamental analysis for portfolio composition and utilizes proprietary technical value zones for trade entry/exit levels, creating a disciplined approach to commodity based macro investing. The commodity portion (80% nominal exposure or more) of the portfolio consists of three themes: Structural, Tactical and Commodity Index Driven.
The Collateralized Structural Commodities theme pursues long-term value dislocations in commodity prices. The Tactical Commodities theme is more liquid targeting shorter-term opportunities across commodity markets. The Commodity-Driven Opportunistic theme makes up the remaining 20% of nominal exposure which consists of commodity-linked FX and/or fixed income; expressing commodity views via non-commodity instruments that may provide more optimal risk/reward. Galtere’s strategy does not explicitly target a particular return, volatility or market correlation, but focuses on constructing the portfolio around identification of the optimal reward-to-risk ratio.