The Resource Opportunities Program

The Millburn Resource Opportunities Program (“ResOP”) seeks to take advantage of current and emerging/disruptive opportunities in commodity, natural resource and commodity-centric themes, including the potential for inflation.

 

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ResOP is constructed predominantly from Millburn’s existing, tested commodity models, markets and strategies

  • Utilizes a subset of data, markets and models from Millburn’s Commodity Program (soft-closed since 1Q2018)
  • Includes global outright and futures spread markets
  • Also includes Chinese futures markets, where Millburn has meaningful live experience, offering the opportunity to access a growing number of unique, historically non-correlated commodity exposures

An expansive set of “next generation” or disruptive themes and instruments complements more traditional commodity investments

  • Resource Thematic strategies provide additional, diverse exposures and an opportunity to benefit from emerging themes
    • Clean tech
    • Commodity-centric currency and equity index exposures
    • Securities of upstream and downstream commodity/resource producers
    • Inflation
    • Other disruptive themes

A dynamic, full long/short approach (no bias) provides the opportunity to take advantage of both rising and falling markets

  • Utilizes Millburn’s proprietary multi-feature statistical/machine learning approach, utilized since 2013, which allows strategies to make use of various types of data, and evolve over time as the markets change

Market Forces

Commodities historically have been highly correlated with inflation and have offered low correlation to equity and fixed income asset classes.

Today, a convergence of additional market forces may be setting the stage for increased opportunities in commodities and resource/commodity-related themes, and increased value in the context of an overall portfolio.

Money
Inflation
Gold Chinese statue
Influence of China
Wind turbines
Clean Technology
Old building
Central Bank Actions
Person wearing mask
Pandemics
Shipping cargo
Supply Chain Disruptions

A Global Opportunity Set

ResOP seeks to profit from the potential increased volatility of commodity, natural resource and inflation-related markets by taking active positions, long or short, in approximately 100 instruments globally.

Grain commodities

Global Commodities

  • Agricultural Futures
  • Energy Futures
  • Precious Metal Futures
  • Industrial Metal Futures
  • Soft Commodity Futures
Chinese city

China Commodities

  • China Energy Futures
  • China Industrial Metal Futures
  • China Plastic Futures
  • China Soft Commodity Futures
  • Other unique markets
Solar panels

Resource-related Instruments

  • Commodity/Resource-related FX
  • Commodity/Resource-related Equity Index Futures
  • Disruptive “Next-Generation” Commodity and Resource Securities (including clean tech, upstream and downstream producers, etc.)

Seasoned Machine Learning, Multi-Feature Models

Millburn's investment approach combines substantial market experience—including live trading through many market cycles and periods of historical stress—with a rigorous, data-driven approach to quantitative analysis.

ResOP’s process relies heavily on multi-feature models, working in a proprietary statistical machine learning framework, which seek to uncover robust, repeatable patterns in years or decades of historical data. These patterns are used to take long or short positions accordingly in each instrument the Program trades.

 

Data Inputs

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Strategy Components

Directional Trading in Commodities

  • Long/Short
  • The deepest and most liquid subset of global outright futures markets traded within the Millburn Commodity portfolio (primarily energies and metals)
  • Internationally-traded Chinese futures markets
    • Millburn has experience trading Chinese futures since as early as 2013

Resource-Thematic Trading

  • Long/Short
  • Equity index futures of certain commodity-linked economies
  • Currency forwards of certain commodity-linked economies
  • Commodity- and inflation-linked securities, including those providing exposures to upstream and downstream commodity-centric corporate securities, as well as various natural resources, including solar, wind and water

Commodity Spreads

  • Relative Value

  • Strategies that seek to take advantage of properties and temporary inefficiencies between the structure of futures contract deliveries in a range of global markets

Reach out for more information.

Contact us for a full 1-1 presentation on ResOP, or to receive performance and correlation materials and statistics.

 

Copyright © 2024 Millburn Ridgefield Corporation. Millburn Ridgefield Corporation is the successor to an asset management organization that began its operations in 1971. The term “Millburn” is used herein to refer to the activities of Millburn Ridgefield Corporation, its predecessors and its affiliated entities, except as indicated otherwise by the context.   

Terms and Conditions.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE POTENTIAL FOR PROFIT IS ACCOMPANIED BY THE RISK OF LOSS.

The information contained herein is intended for use by sophisticated investors who may be interested in opening a separately managed account. Prospective managed account clients must be "qualified eligible persons" within the meaning of CFTC Rule 4.7. Commodity interest accounts are illiquid, speculative, employ significant leverage, are not suitable for all investors and involve a high degree of risk. Commodity interest accounts may involve high fees. There can be no assurance that an investment program will achieve its objectives. This information is not a solicitation for investment. Such an investment may only be made on the basis of information provided and representations made in the appropriate written disclosure document and a related managed account agreement. Unless otherwise noted, information is current as of September 1, 2023. Important disclosures.