Tellurian Capital : Tellurian Ascend Fund (Long Active)

Summary

The Tellurian Long Active strategy will implement a discretionary trading strategy in the commodity markets with a long bias and a focus on derivative instruments (futures, options, OTC products and cleared OTC products). There will be no physical deliveries in the course of the trading activity. The activity will focus on Energy (oil, natural gas and coal), Metals and Agriculturals. No equities are traded.

Investment Strategy

The Tellurian Long Active strategy will follow a discretionary approach based on fundamentals. There will be no systematic trading based on ‘black box’ trading model as a CTA would do or a set portfolio algorithm. Although the strategy will be largely directional with a long bias, it anticipates to entertain some pure relative value trades such as ‘crack spreads’ between oil products, calendar spreads, differentials between two products of the same family, option (volatility) trades, etc

Risk Management

Particular attention is given to the adequate sizing of positions prior to execution, and to the need to assess the current and anticipated liquidity of the segment of the market. This is in order to ensure ability to take profit or unwind positions without encountering critical liquidity issues. Concretely, the total net exposure for the Strategy of up to 250% of Assets will be allocated among the various portfolios. In all cases these limits will be calibrated to the liquidity of the related market, which could vary depending of market conditions prevailing at the time. On average the strategy has been running a net exposure of around 100% of Assets since inception. Only liquid instruments are traded.