Polar Star Management – Strategic Developments and Opportunities
Our founding investment team have been applying a relative value trading strategy in the commodity markets for the last 14 years, both whilst managing the flagship Polar Star Fund Ltd for the last 9 years and prior to that whilst working in an investment bank.
Our reality however, is that the underlying markets in the commodities we trade are evolving and changing constantly, predominantly cyclically – both in the short term and over a longer time horizon.
More importantly, is the fact that the financial markets underpinned by this underlying commodity complex are evolving equally rapidly and with increasing sophistication and complexity. Given this backdrop, we have maintained an acute focus on understanding both of these factors as they evolve and impact on our markets, opportunity set and our business.
As a result of this dynamic, we have slowly expanded our investment team over the last three years - by including highly specialist resources that will allow us to quantify, understand and exploit these macro structural developments over time. Practically, this has enabled us to develop strategies and capacity, both human and quantitative to exploit these new and growing opportunities, in addition to our constant focus on the methodologies of the flagship fund.
The result of these endeavours and developments is that we are now able to offer additional specialist funds, designed to focus on these different areas of the market – managed by dedicated team members with the unique skillset and relevant experience required.
Each new specialist fund is detailed below:
Polar Star Spectrum Fund
This Fund is a multi-strategy commodity portfolio which launched in August 2018. It focuses on trade flow data to identify short and long term imbalances in the pricing of global commodities, applying a fundamental view with quantitative verification across the following strategies: directional, carry cost arbitrage, processing margin and relative value trades.
In comparison to the Polar Star Fund, the Polar Star Spectrum Fund expresses trades across a greater number of investment strategies, with a higher concentration of commodities and a shorter investment time horizon.
Polar Star Quantitative Commodity Fund
This Fund applies multiple quantitative strategies across a broad range of commodities and markets. It employs market standard and proprietary applied statistics, research and machine learning to optimise the positive rate of returns across the following quantitative strategies: carry cost arbitrage, trend, relative pairing and hybrid quantamental strategies.
The Fund was launched on the 1st January 2019 and focuses on a broad number of portfolio positions, trading with a shorter time horizon in deeply liquid instruments.
Polar Star Diversified Commodity Fund
This Fund invests in and across the underlying defined focus Polar Star commodity funds, allocating investment and creating this blended risk and return profile by optimizing a quantitative and discretionary portfolio allocation process between these three funds:
- Polar Star Fund (Flagship Fund),
- Polar Star Spectrum Fund &
- Polar Star Quantitative Commodity Fund
The Fund was launched on the 1st January 2019 and we expect to see lower volatility and risk with investments spread across the range of Polar Star strategies.
This set of diversified funds offers a broad range of opportunities to the commodity markets, whilst at the same time leveraging off the research, fiduciary and market infrastructure that the core business has built over time.
If you would like to discuss any of the funds or wish to be included in the monthly distribution of these funds, please email Allannah Scott-Bowles or myself on email@example.com.