Frontier Commodities (Frontier), an innovative absolute return commodity strategy, announced its launch. Frontier’s strategy for professional investors focuses on long/short investments in metals, energy, agricultural and environmental commodities.
Frontier takes a unique approach to commodity investing, employing a “quantitative” trading style that combines compelling fundamental analysis with advanced systematics and risk management. Frontier uses a proprietary, AI-powered database and algorithms as well as a deep, established network of commodity experts to make its investment decisions.
Frontier is led by Aline Carnizelo, Managing Partner, supported by an experienced in-house team. Carnizelo has 18 years of experience in cross-asset investing, including derivatives trading, structured products, interest rate modeling, fundamental analysis, AI/big data analytics, ESG and risk management.
“We strongly believe that commodities as an investable asset class are critical to achieving long-term return objectives and dynamic diversification for investors,” Carnizelo said. “Companies are changing the way they source materials and produce goods as a result of climate change and geopolitical risks. This is a secular trend that offers opportunities for specialists in the raw materials industry. With Frontier, we are developing a data-driven strategy that aims to provide an inherent hedge against the inflationary environment and supply chain disruptions by capitalizing on the commodity opportunities that this secular trend has created.”
“Investors should not have to accept increased volatility in order to participate in rising commodity prices,” continued Carnizelo. “Our team has a multi-year track record of investing through the ups and downs of markets. We look forward to building Frontier and a strategy that addresses the myriad themes driving the cross-commodity universe, such as higher inflation, energy transition, geopolitical risk hedging, commodity volatility and carbon credit market growth.”
