OI6: A Fundamental Approach to Commodities ft. Ricardo Leiman & Pedro Marion
Top Traders Unplugged
Shownotes Transcript
In this episode, Moritz Seibert is joined by Ricardo Leiman and Pedro Marion from KLI Asset Management, a UK-based commodities-focused hedge fund. Ricardo and Pedro explain why KLI’s trading approach is rooted in deep fundamental analysis of commodity supply and demand and how they integrate commodity equities into their portfolio. Furthermore, they mention that the strong diversification across their portfolio of about 30 markets allows them to hold directional positions longer term, avoiding stop-outs on short-term price reversals – a feature that’s also an edge. Ricardo and Pedro also provide color on markets which they believe are currently interesting, including copper, sugar, coffee, oil, and EUA emission allowances.
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**Episode TimeStamps: **
**02:09 - **Introduction to Ricardo and Pedro
**06:18 - **What is their edge?
**07:57 - **What commodities are they trading?
**08:46 - **Why they don't trade cocoa
**11:09 - **Acquiring information through networking
**13:40 - **Why and how do they trade commodity equities
**17:15 - **What do they consider long-term?
**19:38 - **Why isn't copper sky rocketing?
**22:01 - **Their approach to options
**22:50 - **How they incorporate trend following in their trading
**25:24 - **Global macro perspectives
**27:28 - **No hard landing?
**28:35 - **Is the coal market dying?
**31:14 - **The outlook of EUAs
**35:03 - **Do they formulate a price target in their models?
**37:08 - **A disconnect in the green transition
**38:58 - **Natural gas market integrating with LNG
**40:55 - **Their view on the grain markets
**43:34 - **A quick touch on other markets
**44:20 - **Thanks for listening
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