203 North LaSalle Dr., Suite 2110
Chicago, IL - United States 60601
Contact: ir@sigmadvanced.com
Phone: +1 312-646-5079
INVESTMENT PROGRAM
Sigma Advanced Capital Management seeks absolute returns and alpha strategies through a Quantamental Investment Process that combines proprietary fundamental models with quantitative methodologies to inform discretionary trading decisions. Our experienced team has a deep background in commodities, power, and carbon trading.
Carbon Neutral Alpha Program (CNA) - QEP Only
Bloomberg Ticker: SIGMCNA US Equity
Carbon Neutral Alpha Program (CNA) - QEP Only
Bloomberg Ticker: SIGMCNA US Equity
An Absolute return program focusing on global carbon markets i. It develops a risk-adjusted portfolio of the most liquid futures, option and relative value strategies and spreads of the Compliance Carbon Markets, which it seeks to perform in different market environments and economic cycles.
Investment Thesis
•Structural Reforms in ETS Systems:
Several ETS systems are implementing policies and reforms, some by 2025, to create a supply deficit and signal long-term higher prices. ETS markets are also looking to expand post-2030 towards 2050.
•Higher Carbon Prices are Necessary (150 – 400 $/mt co2e):
Higher carbon prices are essential to decarbonize the economy, incentivize permanent abatement solutions, and encourage investments in low-carbon technologies.
•Global Expansion of ETS Carbon Markets:
ETS markets are expanding globally, with regions at different development phases. Price differences are expected to converge towards higher levels in the coming decades.
•Market-Specific Characteristics:
Each ETS market has unique characteristics, fundamental factors, and conditions. This requires deep understanding to unlock unique benefits and opportunities, allowing for diversification when combining different ETS into a portfolio.
•Carbon Prices deviate from fundamental value
The ETS carbon market prices often deviate from their fundamental value due to regulatory interventions, market speculation, and varying compliance strategies among participants, leading to price distortions