Salus Alpha launches arbitrage strategy with daily liquidity

Salus Alpha launches arbitrage strategy with daily liquidity

Salus Alpha has launched a commodity arbitrage fund, which it says is the first to successfully combine an arbitrage strategy with daily liquidity. 

The strategy tries to profit from price differences on various commodity markets or between related commodities.

The investment approach of the Salus Alpha Commodity Arbitrage enables the fund to obtain returns for the investors from both Backwardation (the expiring futures contract is more expensive as the next delivery month) and Contango (the expiring futures contract has a lower price than the next contract that will be bought).
 
In addition the Salus Alpha Commodity Arbitrage employs seasonal strategies. Energy products, for example, experience higher demand in winter (for heating) and in summer (for cooling) than in spring and autumn. These imbalances produce arbitrage opportunities that the fund tries to exploit.
 
Salus Alpha Commodity Arbitrage invests indirectly into commodities via index derivatives such as swaps and wutures. The fund’s portfolio consists of financial indices, e.g. the CAX - Commodity Arbitrage Index listed on the Vienna stock exchange. The index was launched by Alternative-Index, a member of the Salus Alpha Group.

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