Duet Commodities Positioned For Oil Volatility

With returns of 12.31 percent year to date, Duet Commodities fund continued to tread water in September, down -0.34 percent after being down slightly in August and July, according to a letter to investors reviewed by ValueWalk.

The strategy has three primary performance drivers.

Duet Commodities Fund's profits driven by volatility

A relative value strategy can be impacted by volatility and the price relationship between different commodities. Often times such hedge funds look at trends in the price relationships and adjust their positioning when price relationships deviate from statistical norms, waiting for a mean reversion. One such spread trade could be selling Brent Crude while buying refined...