We seek to 1) outperform the benchmark; 2) provide portfolio diversification and inflation protection; 3) achieve uncorrelated, equity-like returns.
We believe an active management strategy based on fundamental research can generate alpha and deliver the diversification benefits of an allocation to commodities within an investment portfolio.
GE Asset Management’s Approach:
- Broad and diversified commodity exposure
- Employ fully collateralized spread strategies on a portion of the portfolio
- Generate original and on-the-ground global field research
- Leverage GEAM equity research and GE global network
The investment process is grounded in GEAM’s long-standing active, fundamental research-driven approach to investing. The team begins by analyzing the full range of commodities within the DJ-UBS Total Return Commodity Index as well as certain out-of-benchmark commodities. The investment team examines consumer and producer intelligence, by leveraging relationships with public companies, strategic counterparties, and the GE global network. Original commodity research is a key component in which the team performs in-depth supply/demand and inventory analysis. Based on this bottom-up research, the team seeks to strategically set individual commodity weights, employ inter/intra commodity spread trades, and actively manages the roll yield. The portfolio is constructed largely through the use of listed futures contracts, but may incorporate listed options and ETFs.
