Despite Commodities Asset Class Losing 34% During 2015, Red Rock Capital's Commodities Program Finishes Up +31.30%

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During a terrible year for the commodities asset class, Red Rock Capital's Commodity Long-Short investment program shined for its investors producing +31.30% rate of return for the year, net of all fees.

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During a year when commodities as an asset class lost 34%, Red Rock Capital’s Commodity Long-Short investment program proved its agility by producing over 31% net returns for the year for its investors. Since its inception in September 2013, during a period that has been extremely challenging and that has witnessed both J.P. Morgan and Deutsche Bank quitting the global commodities trading business, the Commodity Long-Short program has produced over +95% net of fees returns for its investors.

Chief Investment Officer of Red Rock Capital, Thomas Rollinger, who is also the Managing Partner of the firm, developed the Commodity Long-Short strategy to exploit inefficiencies he could clearly see in tangible / hard commodity futures.

“Physical commodity futures are more susceptible to supply and demand shocks than are financial futures”, Rollinger said. “While most Commodity Trading Advisors (CTAs) were waiting for capturable trends to develop across interest rate, equities, and currency markets during 2015, we were successfully exploiting obvious pricing inefficiencies that manifested themselves in the physical commodities markets, such as crude oil, natural gas, gold and silver.”

When inefficiencies arise, Red Rock Capital’s Commodity Long-Short program is designed to diligently implement “long” or “short” outright, directional positions in markets from a diversified physical commodity futures portfolio that encompasses agricultural, energies, base metals, precious metals, and softs sectors.

Red Rock Capital manages approximately $75 million for investors and approximately $52 million with their Commodity Long-Short program. While the Commodity Long-Short Program clearly shined during 2015, their other program, called the Systematic Global Macro Program, produced an impressive +10.04% net returns for the year, significantly outpacing all peer benchmarks (CTA indexes) over the period.

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