Zafiro Capital Commodities Trading Fund is a Cayman Islands fund, which launched on 3rd November 2014.
The fund seeks to achieve superior absolute returns through investing all its investable assets in the ‘Master Fund’, domiciled in the Cayman Islands. Our strategy will be to concentrate on investing and trading in exchange traded commodity futures, along with a smaller involvement in exchange traded options on commodity futures. The use of options may often be employed to protect the portfolio from the possibility of exogenous economic, geopolitical and weather events, while it can also be used to take advantage of the potential for incalculable volatility events during times of political or seasonal-weather related uncertainty.
We anticipate that the majority of our risk (around 70%) will be in energy, and the remaining 30% will be split between base and precious metals, and agricultural commodities. However, we may make use of diversified strategies if the appropriate opportunity arises. The trading office of the Investment Manager is based in Geneva. The time zone we operate in allows us to capitalise on events prior to London/NY opening and Asian stock markets closing.
Whilst the Investment Manager expects the portfolio to display a macro theme from time to time, it will be specifically designed to contain a heavy weighting of micro-reasoned positions to create diversity and de-correlation from other managers, strategies and the overall macro environment. Directional strategies are initiated to follow the current fundamental trends or are designed to take advantage of a perceived long-term change in a particular market.
Research is fundamental to the Investment Manager in identifying the right trades to make, and to that end we use the best external data and research, provided by a multitude of industry leaders such as Bloomberg, Reuters, Energy Aspects, and Lanworth.
We have enlisted the services of two independent fund directors in the Cayman Islands to sit on our board and provide a comprehensive corporate governance framework. We have endeavoured to provide the maximum amount of risk oversight possible from the directors themselves, who cannot be dismissed by the Investment Manager. We have rigorously sought after and sourced the best third party providers in the industry to act as our custodian, prime brokers, auditors, legal counsels and administrator. With these, we hope to deliver high quality, efficient, and transparent investment services to our investors.
Our Investment Manager’s extensive experience in commodities markets provides Zafiro not only with invaluable knowledge and understanding of the target market areas, but also a ready-made network of contacts in the industry throughout the globe. Our global reach is complemented by an investment team which is fluent in four languages, including French, Polish, and German. Our extensive network within the commodity sector gives us excellent insight to market intelligence, sourcing trade ideas and macro views.