Hedge Funds

Fund to offer play on S&P Commodities indicator


Avanti Partners Management is collaborating with a large overseas bank to launch a new commodities indicator hedge fund in mid-February.

The fund will be tied to the Standard & Poor's Commodity Trends Indicator, or CTI, an index comprising 16 components that Alpha Financial Technologies, a financial research firm that owns Dallas-based Avanti, developed and licensed to S&P.

 Brad White

The fund will determine when to short with an algorithm that compares the price and weighted moving average in a sector over seven-month rolling periods. If the sector price lags the moving average, the fund systematically shorts