Our Mission
RTM Analytics specializes in delivering in-depth analysis of alternative commodity solutions. These insights empower investors and portfolio managers to make more informed decisions when seeking non-correlated diversification benefits to their core equity/fixed income portfolios.
Since 2006, a paradigm shift in the commodity markets significantly diminished the expected return and diversification benefits often associated with long-only commodity exposures. RTM Analytics seeks to provide alternative solutions to address this development and allow investors a more reasoned way to access this important asset class. While many investable programs provide exposure to commodities (both passive and active), they often fail to provide the diversification benefits investors seek from this asset class.
RTM Analytics has developed the Alternative Commodity Algorithmic Program (ACAP), a long/short/flat positioned index-like program that has shown to provide consistent non-correlated returns versus equities and fixed income.
ACAP features
Fixed Methodology: ACAP utilizes a transparent fixed methodology (no style drift) that combines trend, counter-trend, volatility, and seasonality analysis to determine monthly long/short/flat positions in selected commodity futures markets.
Highly Liquid: ACAP components are highly liquid, U.S. Exchange listed (no counter-party risk) commodity futures contracts. These contracts represent the main commodity sectors: Grains, Livestock, Metals, Softs, and Energy.
Risk Management: ACAP has built-in risk management procedures. This includes a proprietary risk-parity structured volatility weighting scheme that combines historical seasonal volatility factors with recent price activity.
Diversification: ACAP has shown to provide superior diversification benefits to a core 60/40 equity/fixed income portfolio compared to other investable alternative programs. These include long-only and active commodity-based programs and managed futures.
Collateralized Returns: ACAP computes Continuous Contract (i.e. Excess Return) and Total Return values. The Continuous Contract is a measure of the long/short positioned price returns. ACAP Total Return includes the Contiuous Contract returns plus interest earned on notional funds.
DISCLAIMER
The content on this website is provided RTM Analytics for information purposes only.
Although the website may include investment-related information, nothing on the website is intended to, nor will, constitute an offer (or an invitation to make an offer) to buy, sell, or to provide any investment services or advice in any jurisdiction. The website is neither an offer to sell nor a solicitation of an offer to purchase interests in any fund, investment product, style or strategy.
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