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Quantitative Strategies in Commodities

NWOne - About
NWOne manages quantitative strategies in commodity and commodity-linked futures based on sound market fundamentals that are rigorously tested and confirmed using statistical/machine learning methods. 

NWOne - Strategies

Fundamental supply and demand imbalances, hedging activity by physical commodity traders, and financial flows from investors can cause commodity prices to temporarily deviate away from their fair value; By using rigorous statistical models augmented with deep fundamental insight into the individual commodity markets, we aim to capture the inefficiencies in a predictable and a repeatable manner using systematic trading frameworks.

Strategy 01
Directional Futures

Fundamental supply and demand driven modelling of each commodity combined with macro demand forecasts. Alpha capture around scheduled and un-scheduled events

Targets highest return during periods of high/transitory inflation. Positions in outright futures with holding period of 4-7 days

Strategy 02
Calendar Spreads

 Commodity inventory modelling combined with risk premium capture around producer/consumer hedging

Targets stable risk adjusted returns at low/negative correlation with the benchmarks

Positions in calendar spread futures with holding period of 1-8 weeks

Strategy 03
Intraday Futures

Exploits structural inefficiency arising from producer hedging activity


Positions in outright futures with holding period under 1 hour




Commodity Sectors


Years of Experience


Focus on Risk Management

NWOne - Team

Jae-Min Hyun - Chief Investment Officer

Founder and the Chief Investment Officer of NWOne, Jae-Min has a
background in quantitative strategies and discretionary trading in
commodities. Prior to NWOne, he was a Portfolio Manager at a seeding
platform funded by Tudor Investment Corp, and a Portfolio Manager at
Ellington Management Group. He started his career at Morgan Stanley as
an options trader managing commodity, equity, FX, interest-rate portfolios.
Jae-Min holds MSci, MA, BA in physics from Cambridge University, an MBA
from Colleges des Ingenieurs and he is a CFA and CMT charterholder.

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