Commodity Trend Following

Our Commodity Trend Following strategy was created in collaboration with one of our advisor partnerships. It was developed to help clients diversify their portfolio returns while also adding a new asset class that has historically performed well in times of stock and bond volatility as well as inflationary periods. See our latest performance fact sheet.

This strategy focuses on 5 commodities: Gold, Silver, Palladium, Oil and Copper. The fund invests an equal weight proportion of its assets into each of the commodities listed above but only when they are trending upward. When the trend turns negative, the fund sells and moves to cash.

Key Portfolio Tenets

Commodities without the LeverageWe target commodities that have exchange traded products such as ETF’s to limit the risk of investing directly in commodity futures.
Portfolio ConstructionThe strategy focuses on a basket of seven commodities. The portfolio is either long a commodity or in cash. We do not short in this portfolio.
Intelligent DiversificationThe addition of a commodity trend following to a traditional stock and bond portfolio can enhance diversification as well as offer inflation and downside protection.
AllocationEach commodity can be up to 20% of the portfolio assets. When commodity prices are strongly trending, more of the portfolio will be invested.
Position ManagementOur proprietary quantitative program generates buy and sell signals daily for each commodity though the goal is to trade infrequently. 
Risk ManagementThe portfolio never invests more than 20% of the fund in any position. When the trend for a commodity is negative, we sell and move to cash.