Commodity Portfolio Management: Strategy Structuring Considerations
By Vito Turitto, Lead Quantitative Analyst, S&P Global Platts, U.K.
This article expands on research into commodity portfolio management that was published in the Winter 2019 edition of the Global Commodities Applied Research Digest. Commodity markets are often used to diversify portfolio risk and as a hedge against inflation but, in order to maximize returns and hedging effectiveness, it is necessary to develop an approach that examines each commodity market separately. Accordingly, this article analyzes individual commodity returns and provides guidance on how extreme returns can impact commodity portfolio strategies.Read Article