Our Programs

CoreCommodity Management offers a suite of commodity investment strategies designed with our clients' objectives in mind. The investment objective of CoreCommodity Management's long-only institutional programs is to deliver superior risk-adjusted returns relative to selected benchmark indexes. CoreCommodity Management's absolute return program seeks to provide positive returns to investors irrespective of the directional performance of the asset class.

CoreCommodity Management additionally offers natural resource equity strategies that seek to provide global, diversified commodity exposure and capital appreciation.

Commodity Trading Involves Substantial Risk of Loss.
 

"The CoreCommodity programs are discretionary active strategies designed to provide exposure to commodities as an asset class."

Program Overview

Program

Strategies

Objective
Diversified I
Seeks to outperform the Bloomberg Commodity Index		 Long-Only Yield Management Seeks to outperform the Bloomberg
Commodity Index
Diversified II
Seeks to outperform the Thomson Reuters / CoreCommodity CRB Index		 Long-Only Yield Management Seeks to outperform the Thomson Reuters / CoreCommodity CRB Index
High Energy
Seeks to outperform the S&P GSCI		 Long-Only Yield Management Seeks to outperform the S&P GSCI
The yield management strategies (Diversified I, Diversified II and High Energy) seek to generate long-term, sustainable excess returns by focusing on commodity yield enhancement techniques including forward futures contract selection, discretionary timing of execution, active and opportunistic trading and risk monitoring. The difference among the three Programs relates to the selected benchmark index that each Program attempts to outperform.

Program

Strategies

Objective
Founders I Long-Only Yield Management + Tactical Weightings Seeks to outperform the Bloomberg
Commodity Index
Founders II Long-Only Yield Management + Tactical Weightings +
Commodity Equities		 Seeks to outperform the Bloomberg
Commodity Index
Founders Equity Commodity Equities Seeks to provide commodity exposure and capital appreciation through Natural Resource Producing Companies
Founders Absolute Return Directional Commodity Exposure + Inter-Commodity Relative Value + Intra-Commodity Relative Value + Commodity Equities Seeks to generate 10% annualized returns
 

Founders I Program

  

Founders II Program
The Founders I Program combines the yield management techniques offered in Diversified I along with a tactical and dynamic commodity weighting strategy. The investment team has developed proprietary investment strategies to dynamically adjust the weightings of the various constituent commodities with the objective of seeking higher total returns. The weighting decisions generally favor those markets demonstrating characteristics of fundamental scarcity – upward trending price behavior and more favorable forward term structures while underweighting markets determined to be less constrained and better supplied.   The Founders II Program continues to build on the investment techniques of Founders I (i.e. yield management and tactical weightings) by also incorporating calculated exposure to natural resource equities. Given that benchmark indexes for commodity futures rely on a limited number of liquid contracts, natural resource equities may provide access to certain globally significant commodities for which no liquid futures contacts exist. By including tactical, diversified and limited participation to natural resource equities, the Founders II Program seeks additional returns and broader diversification.
 

Founders Equity Program

  

Founders Absolute Return Program
The Founders Equity Program seeks to provide global, diversified commodity exposure and capital appreciation by investing in stocks of publicly traded natural resource companies principally engaged in commodity production. The Program is a quantitatively-informed strategy with integrated risk management. Founders Equity systematically analyzes publicly available data at the individual stock, industry and sector level. The broad quantitative approach incorporates both top-down and bottom-up analysis in reviewing corporate fundamentals, market dynamics and meaningful economic relationships. The Program utilizes CoreCommodity’s expertise in multi-factor, risk-adjusted alpha generation. Additionally, the Founders Equity Program can be customized to fit specific clients’ needs as well as SRI investing.   The Founders Absolute Return Program seeks to provide favorable returns through a diverse portfolio of alpha-generating strategies that are expected to be uncorrelated to traditional equity, fixed income and commodity indexes over long periods. The Program holds a liquid, diversified portfolio (by sector, individual commodity and investment strategy) and aims to generate consistent, stable uncorrelated alpha over long periods, targeting 10% annualized returns. Founders Absolute Return may employ the following alpha-generating techniques: directional commodity exposure, inter-commodity relative value, intra-commodity relative value, and commodity equities.

 
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