iTTa Asset Management Ltd. : iTTa Commodity Spread Trading - 2x

Summary

The iTTa Commodity Spread Trading is a commodity market neutral trading program, which offers investros access to a broad range of low correlated systematic alpha strategies, and is designed to provide an alternative allocation to commodity according to investors' risk preferences. The iTTa Commodity Spread Trading aims to deliver competitive returns with a low level of volatility under considerations of capital preservation and liquidity.

Investment Strategy

The iTTa Commodity Spread Trading aims to profit from price inefficiencies prevalent in the global commodity markets, both among commodities within the same bloc and among different maturities of the same commodity arising from situations such as seasonality, extreme contango/backwardation, short-term liquidity imbalance, and relative strength, etc. Investment universe may include crude oil, heating oil, gasoline, natural gas, wheat, corn, soybean, soybean meal, soybean oil, oat, rice, lean hog, live cattle, feeder cattle, sugar, coffee, cotton, lumber, cocoa, palladium, platinum, silver, gold, copper, and so forth.

Risk Management

The risk manager provides independent daily monitoring of investment restrictions to ensure the portfolio is operating within the stated risk limits. A stated monthly stop loss is enforced. Once the montly stop loss limits approach, portfolio manager has to compulsorily reduce the positions. Stop orders are not used in the spread markets; however, when the portfolio apprach the stop loss limits, positions are exited in an orderly manner to avoid excess slippage.