Forward Funds has launched the Forward Commodity Long/Short Strategy Fund, which aims to profit from both up and down movements of commodity prices.
Forward said that while commodity mutual funds have been available since 1997, it is only one of three commodity long/short funds.
“This strategy combines long and short positions to capitalize on price momentum of rising and falling commodity prices,” said J. Alan Reid, Jr., chief executive officer of Forward Management. “Commodities have tremendous appeal for sophisticated investors, due to their very low correlation with other major asset classes and the rising global demand for commodities such as oil, copper and steel.”
Reid added: “We believe that in this era of unpredictable returns, higher volatility and higher asset class correlations, investors and advisers will need more nimble investment solutions to achieve the outcomes they are seeking.”
The fund tracks the Credit Suisse Momentum and Volatility Enhanced Return Strategy Index.