QERI LLC : QERI LLC Fundamental Commodity Strategy

Summary

QERI LLC (“QERI”) is an asset management firm founded by Todd Gross and Joanne Spears, commodity industry professionals each with 20+ years experience in the Energy sector. Omer Ahmed joined QERI in January 2014 to focus on firm strategy and business development. The team’s complementary backgrounds are comprised of trading, research, asset management, asset allocation, risk/hedge consulting, and brokerage. The firm invests client capital in fundamental strategies based on the supply/demand balances of Energy markets. These investments are expressed in financially traded, liquid and transparent contracts listed on major U.S. and European exchanges.

Investment Strategy

Strategy Description: Hybrid Systematic/Discretionary. QERI’s Fundamental Commodity Strategy actively manages investments in Energy markets. QERI’s model deconstructs and re-assembles all key strategy contributors systematically. This comprehensive approach leverages the team’s trading talent and illuminates mitigating factors such as specific bottom up as well as common global macro issues. QERI’s approach is tailored to monetize unique and uncorrelated opportunities that can enhance an investor’s commodity exposure as a standalone strategy or as a complement to the investor’s existing allocations to passive long only indices and long trend following techniques. The investment portfolio is comprised of highly liquid futures and options traded and cleared on major U.S. and European exchanges. Products traded: WTI and Brent Crude Oil, Rbob Gasoline, Heating Oil, Gasoil, Natural Gas. Average holding period: 2-14 days.

Risk Management

Having a model identifying a consistent flow of investment ideas enables the investment team to apportion risk “democratically” to strategies in the portfolio, avoiding risk concentration in any single strategy (average 1% of AUM per strategy) as opposed to a traditional fundamental strategy which risks capital in a few major themes per year. We look to capitalize on investment themes within a medium term time frame, i.e. 2-14 days, as opposed to a traditional fundamental strategy which may hold a position 3-6 months, weathering significant drawdowns, before the thesis is or is not verified in market price. Our implementation of quantitative analytics lends skillful timing and valuation of entry/exit. We can better identify when an investment is fulfilling its potential or not performing up to expectations, which leads to more precise methods of profit taking and stop losses.