Insights & Research
February 2024
Invest in Commodities - Portfolio Diversification Matters
By Matthew Schwab, Head of Investor Solutions at Quantix Commodities
Diversification is the foundation of modern portfolio theory. The standard ”60/40” approach is based on the expectation that equities and bonds will have little to no correlation over time. Since 2000, equities and bonds have been negatively correlated, but this is historically unusual: over the long term, equities and bonds have been positively correlated most of the time.
In this paper we demonstrate that if equity and bond correlations revert towards their historical norm, we believe that investors will need to look beyond the ”60/40” for those diversification benefits, with a commodity investment a potential natural place to start. To those concerned about the recent disappointing investor experience with commodities, we argue that this is due to using the wrong tools rather than the wrong asset class.
December 2022
Companies, Commodities, and the Energy Transition
By Matthew Schwab, Head of Investor Solutions at Quantix Commodities
Over 90% of global GDP is committed to an energy transition which will include a massive expansion of renewables over the next 30 years. To date, most investors have chosen to express the Energy Transition theme via public or private equity investments.
In this paper we demonstrate why direct investments in the commodities can be a more effective and efficient expression of the Energy Transition investment theme and, crucially for allocators with existing commodity equity investments which are therefore structurally short commodities, a commodity futures allocation can also act as a diversifying hedge.
July 2022
The Energy Transition and the Role of Commodity Futures
By David Greely, Ph.D, Economist and Investment Strategist, and Senior Advisor, Quantix Commodities
The world has committed to transitioning to a low-carbon energy system. Our current energy system, which has been dominated by fossil fuels, will transition to one that is increasingly electrified and powered by renewables, which will require massive amounts of minerals and metals.
October 2021
A Webinar on The Role of Commodities in Institutional Portfolios during an Inflationary Period
Panel discussion with Don Casturo (Quantix), Tammam Mouakhar (Head of Real Return Programme at GIC), Linus Nilsson (Senior Portfolio Manager at APG Asset Management) and Phil Pothier (Partner & Investment Analyst at Albourne Partners)
Some of the largest institutional investors in the world discuss how they consider commodity allocations, how they implement them (public vs private, futures vs equities, sizing) as well as how they are managing them during the current inflationary environment.
July 2021
A Webinar on Profiting from Inflation: Commodities as a Powerful Hedging Strategy
Panel discussion with Don Casturo (Quantix), Jeff Currie (Goldman Sachs), David Carter (Lenox Wealth Advisors) and Jeff Weiss (Colter Lewis)
Is the Inflation Threat real? Commodities as an Inflation Hedge. Scarcity or Debasement? A lively and information-packed panel addresses these topics and many more, including Crypto.
June 2021
Why Commodity Futures Provide Better Inflation Protection than other Real Assets for the Return-oriented Investor
By David Greely, Ph.D, Economist and Investment Strategist, and Senior Advisor, Quantix Commodities
The threat of rising inflation is leading many investors to seek ways to protect their investments from the risk of both an erosion of purchasing power and a decline in value driven by increasing yields.
October 2020
The Different Forms of Commodity Inflation: Scarcity or Debasement?
By Don Casturo, Founding Partner & Chief Investment Officer, Quantix Commodities LP
Commodities have long been considered a potential hedge against inflation and for most investors there is a clear rationale. There are many papers, written by either academics or asset managers, as to why this is the case, which often use data sets spanning decades or centuries to make the authors’ point.
May 2020
The Case for a Tactical Allocation to Commodities amid the COVID-19 Crisis
By Dr. Daniel P. Ahn, Principal, KNOA and Senior Advisor, Quantix Commodities
The COVID-19 pandemic and resulting “sudden stop” in the global economy is almost certainly the defining economic event of this decade, and possibly of the entire first half of the 21st Century.
November 2018
The Role of Commodities as a Strategic Asset Class
By Dr. Daniel P. Ahn, Senior Advisor, Quantix Commodities
This report provides a broad overview of the outlook and rationales for considering commodities as a strategic asset class in a well-balanced financial portfolio.