Puerto Rico-based Strategic Funds LLC has launched The Strategic Commodity Fund, a private fund that combines traditional with digital economy exposure and expects to generate alpha from nothing less than a major civilizational shift.
The new fund currently was incubated with roughly $1 million in assets. Strategic Funds, founded in 2018, at present has assets under management and advisory totals above $150 million. It offers curated alternative investment strategies to accredited high net worth individuals and institutions, through Strategic Capital Advisors LLC (via managed accounts) and Strategic Capital Fund Advisors LLC (via both managed accounts and private fund offerings.)
In announcing the launch of The Strategic Commodity Fund, Nikolas Joyce, the chief investment officer of The Strategic Funds, said: “We believe that the 2020s will be a decade of major transition, as human civilization begins the unprecedented process of changing how we get our energy. We are seeing a move out of pollutive hydrocarbons and into renewables like nuclear, solar, wind, and hydrogen.”
Joyce is a former portfolio manager and commodity trading advisor at Trend Management and has since built out a systematic strategy based on the deployment of algorithmic trading, artificial intelligence, machine learning, big data and other techniques reliant on proprietary technology infrastructure.
According to Strategic, there has been a shift that is responsible for a new definition of the investment universe, consisting of the categories of investment most integral to the next economic equilibrium. There are six segments within the new universe, which the firm calls “Commodities 2.0.” They are: data; green energy; traditional energy; metals and materials; agriculture and freshwater; and the logistics of trade.
The new fund will employ a “bidirectional, algorithmic trading approach,” and will include an equity component.
Investors in The Strategic Commodity Fund will be acquiring exposure to single-name equities, ETFs, and commodity futures. The thesis behind the portfolio choices is that participation in the changing commodity space combined with the mitigation of inflation/currency debasement risk in relation to the U.S. dollar will generate alpha.
Strategic Capital Advisors LLC is a member of the National Futures Association and is registered as a commodity trading advisor and a commodity pool operator.
“We are excited as we look to the future,” Joyce also said. “Fundamental changes in the commodity landscape are in play, and new challenges will certainly arise, but innovation will provide unique opportunities for alpha generation.”