Experience Modernized
To become the world’s most trusted and innovative commodity investing firm by 2030, delivering superior returns and positive social change for our clients and partners.
About our investment firm
Bellator Capital is an alternative investment firm with a focus on generating exceptional returns through our technically based quantitative trading program. There can be no assurance that the portfolio implementing the true level of risk sought can actually be achieved.
The firm is registered with the CFTC and is also a member of the National Futures Association.
Agriculture
Average Daily Volume
1.2 Million
Average Daily Notional Value
52.5 Billion
Energy
Average Daily Volume
2.0 Million
Average Daily Notional Value
109.7 Billion
Equity Indices
Average Daily Volume
6.6 Million
Average Daily Notional Value
1.2 Trillion
FX
Average Daily Volume
1.1 Million
Average Daily Notional Value
102.2 Billion
Interest Rates
Average Daily Volume
11.4 Million
Average Daily Notional Value
8.2 Trillion
Metals
Average Daily Volume
556.5 Thousand
Average Daily Notional Value
74.5 Billion
Frequently asked questions
Who qualifies as a QEP?
In order to be considered a Qualifies Eligible Person ("QEP"), as defined in CFTC Regulation 4.7, an entity must meet both a requirement in Section 1 and a requirement in Section 2, or the entity may meet one of the requirements in Section 3.
Section 1
- Entity is an investment company registered under the Investment Company Act (i.e. mutual funds).
- Entity is an insurance company, bank, savings and loan association, or like institution acting for its own account or the account of a QEP.
- Entity is a plan established and maintained by various governments and related bodies for the benefit of their employees, if such plan has total assets when in excess of $5,000,000.
- Entity is an employee benefit plan within the meaning of the ERISA (if the investment decision is made by a plan fiduciary specified in the rule, has total assets in excess of $5,000,000; or for a self-directed plan, the investment decisions are made solely by persons that are QEPS.
- Entity is a 501(c)(3) organization with total assets in excess of $5,000,000.
- Entity is a corporation, business trust, partnership, LLC, or similar business venture with total assets in excess of$5,000,000 and not formed for the specific purpose of participating in the strategy.
- Entity is a pool, trust, insurance company separate account or bank collective trust, with total assets in excess of $5,000,000, which was not formed for the purpose of investing in the strategy and whose authorized investment manager is a QEP.
Section 2
- Owns securities (including pool participations) of issuers not affiliated with him and other investments with an aggregate market value of at least $2,000,000.
- Has had on deposit with an FCM at least $200,000in exchange-specified initial margin and option premiums for commodity interest transactions, together with the required minimum security deposit for retail forex transactions, in the six months prior to the investment.
- Has a combination of the two requirements above(a), expressed as a percentage of the minimum amount required thereunder, and the amount of futures margin and option premiums includible under (b), expressed as a percentage of the minimum amount required thereunder, equals at least one hundred percent. For Example: $1,000,000 in securities and other property as 50% of (a) and $100,000 in exchange specified initial margin and option premiums as 50% of (b).
Section 3
- A partnership, corporation or other entity, other than an entity organized principally for passive investment, organized under the laws of a foreign jurisdiction and which has its principal place of business in a foreign jurisdiction.
- An estate or trust, the income of which is not subject to United States income tax regardless of source.
- An entity organized principally for passive investment such as a pool, investment company or other similar entity; provided, that units of participation in the entity held by persons who do not qualify as non-United States persons or otherwise as qualified eligible persons represent in the aggregate less than 10% of the beneficial interest in the entity, and that such entity was not formed principally for the purpose of facilitating investment by persons who do not qualify as non-United Statespersons in a pool with respect to which the operator is exempt from certain requirements of Part 4 of the Commodity Futures Trading Commission’s regulations by virtue of its participants being non-United States persons.
- A pension plan for the employees, officers or principals of an entity organized and with its principal place of business outside the United States.
What is the typical investment amount?
"In 1996, Ray Dalio, founder and co-chief investment officer of hedge fund Bridgewater Associates, sought to create a more sophisticated alternative to the traditional 60/40 portfolio (60-per-cent equities, 40-per-cent fixed income).
He wanted something that would hold up in almost all market conditions. To further that goal, Dalio’s All-Weather Portfolio included a 15-per-cent allocation to commodities.
That’s higher than most advisers recommend. (Five per cent to 10 per cent would be more common.)
Still, 2022 proved to be the kind of year when all-weather assets prove their worth as equities and fixed income declined in tandem." (Michael McCullough).
Why Invest in Commodities?
Investing in commodities can provide investors with:
- Diversification away from the standard core holdings of stocks and bonds.
- A hedge against inflation, as commodity prices often follow inflation and may provide a defense against the impact of rising prices.
- Excess positive returns.
- Physical assets.
Investors may experience volatility when their investments track a single commodity or one sector of the economy. Supply, demand, and geopolitics all affect commodity prices.
Why should we choose a new money manager?
Emerging managers tend to outperform their more established peers, particularly in their first two years of existence.
This is a well-documented phenomenon. A study from Hedge Fund Research Inc that tracked 564 managers demonstrated that hedge funds in their early years tended to outperform funds in their later years, with higher risk adjusted returns in the first and second years.
What’s more, when examining new funds launched by new fund managers compared to new funds launched by established fund managers, both showed early stage out-performance. However, new manager funds typically outperformed the established manager funds over similar time periods.
Similar results have been documented from the mutual fund sector in a 2014 study published by the National Bureau of Economic Research. The study found that funds that were less than three years old beat their respective benchmarks by significantly more than funds that were 10 or more years old beat theirs—by an average of about one percentage point a year.
Why Do Newer Fund Managers Outperform?
1. They have a greater incentive to outperform to attract more AUM and therefore become profitable. Quite simply, they probably work harder!
2. They often run smaller funds and are therefore more nimble and agile, enabling them to concentrate on their best ideas.
3. They often have 'skin in the game’ in the form of significant company equity and/or personal investment in the fund itself.
4. They often apply subject-specific expertise to niche markets.
These factors give emerging managers some major advantages over their larger counterparts and go some way towards explaining the data shown above. There are many other factors at play and choosing a new fund manager is no guarantee of outperformance – but still, this is a factor that investors should take into consideration.
Choosing an emerging manager can help to tilt the odds in your favor when it comes to picking the right fund.