Many so-called alternative investments can often exhibit much of the same characteristics as a traditional portfolio, particularly during periods of market crises. Therefore, it is important for investors to consider other non-correlated sources of risk in a portfolio that can provide true diversification. NSM's Diversified Return Solutions seek to provide long-term positive returns regardless of market direction and are designed to be truly uncorrelated to an investor's portfolio by not simply providing an "excess return".
Commodities are a truly unique asset class. In financial investment context, they are notable for their diversifying effect on more conventional portfolios of stocks and bonds as well as for hedging unexpected inflation whilst providing exposure to global growth. They also attract varied market participants from financial speculators to informed commercial traders, creating many opportunities for persistent market inefficiencies. Using a diverse set of fundamental drivers, NSM's approach to commodities seeks to capture these inefficiencies systematically in liquid future markets using a long/short or long-biased framework depending on the clients' goals.
Here at NSM our objective is to help meet our clients' objectives by implementing unique solutions at controlling and exploiting market volatility. Our Volatility-Based Solutions are non-directional and designed to exploit structural characteristics of option pricings and relative value opportunities in a fully hedged approach. The process seeks consistent returns by combining a stringent investment process with tight risk control and can be flexibly implemented as a low volatility overlay or higher volatility alpha source.
NSM's Risk Diversify Solutions are designed to tactically and dynamically allocate risk between different assets, factors and ideas to take full advantage of opportunities where the greatest probability for gains can be attained. Our strategy involves investing globally in multiple independent categories that span a wide variety of assets and strategies, which includes commodities, real estate, infrastructure, and risk factors.