Investment Methodology

The  management of Nautical has over 70 years of combined experience in the commodity asset class and investing.  Our business model is based on providing all manner of commodity investments in order to provide potential clients with a comprehensive commodity asset solution. Nautical has developed proprietary investment and trading products that range from enhanced Beta-oriented strategies, like the Dynamic Commodity Allocation System (DCAS) to Alpha oriented products such as the systematic, quantitative Dynamic Commodity Trading System (DCTS) and the Dynamic Commodity Spread System (DCSS).

 

The products range from the active indexes to high Sharpe ratio systematic market neutral/spread programs to systematic directional strategies which exploit the inefficiencies inherent in commodity markets.  Each of these investments may be tailored to meet an individual clients risk/reward tolerance levels in order for their Nautical allocation to fit comfortably within their investment portfolio and help them achieve their overall investment goals.

Some of the ways Nautical is able to meet these commodity asset allocation needs is through superior structured product design, historical data analysis, commodity asset allocation analysis, quantitative modeling, managed funds, and strategic trade execution. Proprietary analytic models and systematic algorithms developed by Nautical are utilized in the trade decision making process.  These models are comprehensive in nature and examine all technical aspects of the commodity marketplace.

These include correlation analyses, price trend recognition, mean reversion patterns, seasonality patterns, volume and open interest trends, Commitment of Trader report analysis, volatility spectrum analysis, and other proprietary programs.  An additional advantage Nautical utilizes is the unique data set created specifically for use in the original Active Commodity Index (ACI©). 

The complimentary skill sets of experienced Nautical personnel allows them to develop investment and trading ideas that are thoughtful and geared towards optimal success. Nautical is able to offer a host of complimentary services that will easily integrate with investors existing asset allocation needs.  The diversification benefits of Nautical strategies and expertise in the area of commodity based investing will allow our clients to achieve their commodity investment goals.