Investment Strategy

Enhanced, diversified returns from a distinct source


The AIS Optimized Commodity strategy is a quantitative, long-short strategy that invests primarily in commodities, as well as currencies and fixed income, to capture returns that are uncorrelated with equities and fixed income. The strategy is implemented by an experienced quantitative investment team that has worked together for a substantial period of time.

The AIS Optimized Commodity strategy seeks to capture price trends across 16 different commodities in four key areas: energy, metals, agriculture, and livestock/meats, along with currencies and bonds. Long-, medium-, and short-term price trends are analyzed and long and short positions are driven by proprietary quantitative signals that have been developed and refined by our team over the past 14 years. Our portfolio managers adjust long/short positions among commodity market components when our signals indicate price trends are initiated or likely completed.

The portfolio is diversified by design and positions are regularly rebalanced. The strategy does not use leverage.


The strategy has produced:

AIS Better Returns
Better return than the commodities market, since inception
AIS Low Average Volatility
Low average-annual volatility; around half that of the commodity and global equity markets
AIS Low Negative Correlation
Low/negative correlations with equities and fixed income

The strategy’s potential benefit to an asset allocator is its ability to improve the risk/return profile of an investor’s overall portfolio. It has historically done so, including the most recent three-and five-year periods.

The strategy has a 14-year track record with around $750 million in assets currently under management.