The HarBull Oil Fund is a highly liquid, open-end, actively managed fund trading derivates to express underlying investment theses, which are derived from fundamental and technical analysis of the global energy market and macroeconomy. Investment strategy of the fund is to deliver uncorrelated absolute returns with an asymmetrically low risk/return ratio. The portfolio management team comprises of professionals who have over 20 years of combined experience within the energy sector and financial markets.
The investment strategy of the HarBull Oil Fund is based on three pillars. Under Pillar 1 we analyze the state of global macroeconomy, which has a fundamental effect on the functioning of physical, financial and commodity markets. Pillar 2 is strategically the most significant building block, and consists of proprietary fundamental analysis of the oil market whereby we monitor multitude of factors, including capacities and strategies of oil exporters and producers, physical oil market and essential energy companies. Lastly, Pillar 3 consists of a sophisticated proprietary technical analysis, which complements the multidimensional view of the market and, thus ultimately enhances the complex current understanding of the global oil market.
The fund offers portfolio diversification and economic hedge properties due to uncorrelated returns with financial markets and zero exposure to systemic risk - only subject to standard operational risk and model risk. Traded instruments include futures and options contracts, and their combination, to construct synthetic positions. Mostly executed trading strategies are time spreads (contango vs. backwardation), inter-delivery and inter-market spreads. Typical trade horizon falls between 2 weeks and 2 months. Occasionally, tactical short-term delta- weighting trades are executed. Strict execution of risk management policies is vital for the effectiveness of the fund, ensuring high liquidity and asymmetric returns of the portfolio.
Pillars of the investment strategy:
Pillar 1 – Macroeconomic data
Pillar 2 – Oil market fundamentals
Pillar 3 – Sophisticated technical analysis