Yet another year of Greg Placsintar Asset Management trading has finished. Unfortunately, the last month of the year was negative for the Seasonal Spread and Option Strategy (Dec 2016, –1.46%) because of the deviation in the Live Cattle Feb Apr spread. However, we still managed to end yet another year with positive returns. This is the 8th positive year in a row for our Seasonal Spread and Option Strategy (PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS).
The above presentation is for informational and comparative purposes only. It is intended only for use by those who are knowledgeable about such comparisons. The index or indices selected to generate the above comparison is/are not available as directly investible product(s). Generally, no individual can purchase an actual index as an investment holding for his or her portfolio. All index comparisons should be considered with the intent to evaluate differences between a singular trading strategy against a designated benchmark.
As we approach the end of the year, market volatility has been higher than expected. This has created less trading opportunities for the strategy. This has been particularly evident in the Wheat and Soybean markets, as we have had to close our positions earlier than anticipated.
We are also seeing unusual activity in the meats market. Specifically, the Live Cattle markets have been working as anticipated, however the Lean Hogs markets have not. We are currently trading a butterfly strategy in the lean hogs that has a range of 2-3 points ($1200-$1600) and this year we are seeing 5-6 ($2000-$3000) point movement, which is a large deviation from the price and is increasing the volatility in our strategy. This is extremely unusual and is not something that we anticipate to continue.
The Eurodollar(GE) curve has remained flat. We have however been able to take profit in some of our positions. If the curve slope remains constant, we will be able to take more profits in our open positions.
With an increase in attention to long term goals, we are also starting to implement spreads that have a long-term approach (2016-onwards).
As always, if you have any questions please do not hesitate to contact with me.
If you have any questions please do not hesitate to contact us at your convenience.
— Gregory Placsintar
— Miguel Sanz Castello
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
The year has ended, a difficult year, a volatile year, but in the end I managed to close with a 20,36% gain. Little by little, I am getting out of the rough times of the summer which were caused by the severe drought in the United States. The drought had not only changed the periodic fluctuations of grain futures but also the whole structure of livestock prices and the prices of derived products.
Only a few days left to the end of the year. It has been the most difficult year in my trading history. Fortunately, we have made a profit of 19,94% during 2012, including the 2,5% we made in November. As usual, meats and energies performed very well the last month of the year and helped us to finish the month in positive. I am not expecting big changes in the last week of the year, although the US Government indecision about the “Fiscal Cliff” and the low volume of trading can make markets even more volatile.
Another month has passed and now we are close to finish this year. October was a good month, with a reasonable profit of 7.44%. This gives us a YTD return of 17.02%. All the markets followed their common seasonal patterns and all the spreads worked as expected. Most of the earnings came from the Energy and Meat spreads but Fixed Income spreads also worked.