Quantamental

Introduction There is an increasing demand for a smart long-only product centered on the commodity space. When most investors think of commodities they are probably only aware of a handful of the commodity futures such a gold and crude oil. The universe of commodities is much more interesting and exciting when taking in a more holistic point of view by increasing the universe of investable assets to a much broader collection of commodities.

Introduction This write-up tries to address the question of how we can increase the synergy and collaboration between quantitative and fundamental aspects of commodity investing. As a first step we need to define what we mean by quantitative and fundamental commodities research or investing and what we hope to achieve with each of these methods. A clash of quant and fundamental points of view Broadly, in the commodities space, fundamental analysis can be thought of as the study of the balance sheets of different commodities of the major producing an consuming nations.