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Statar Capital is a macro investment management company focused on directional and relative-value trades in outright price, spreads and volatility across the global futures markets, with an emphasis in natural gas.

Statar Capital creates investment strategies by identifying situations where:

• Market prices do not reflect fundamental value;
• Quantitative modeling can detect trading opportunities;
• Asymmetric opportunities exist;
• Providing liquidity allows us to capture alpha.

Statar Capital’s CIO, Ron Ozer, is a seasoned investor having previously been a successful portfolio manager at both Citadel and D. E. Shaw & Co., two of the world’s preeminent commodity market investors.

• Diversified absolute returns: Natural Gas Strategy and the Cross-Commodity Relative Value Strategy are mutually orthogonal and historically uncorrelated to major beta and hedge fund benchmarks.

• Disciplined investment process: Focusing on a deep understanding of fundamental and behavioral drivers of underlying markets as well as an optimized idea expression incorporating relative-value and volatility trades.

• Rigorous Risk Management: Real time supervision of market, operational and liquidity risks as well as active monitoring of portfolio and market shock scenarios.

The backbone of the Statar Capital natural gas investment strategy is the proprietary forecasting of inventory and supply/demand balances.

• Market: Producer/Consumer differing utility functions, debt covenants and mismatched flows cause the need for liquidity providing participants able to deploy risk capital. Statar Capital seeks to fill this void by identifying relative value opportunities to provide liquidity on multiple horizons.

• Liquidity Constrained: Dodd-Frank and other factors have caused an exodus of risk capital from the commodity markets, which has helped exacerbate temporary mispricings. Meanwhile, producer hedging appetite has steadily increased. This has provided the best opportunity set for natural gas trading in many years.

• Weather: Idiosyncrasies of weather variance help present opportunities in the natural gas price and volatility curves.

• Volatility: Black-Scholes with skew/smile adjustments assumes log-normal pricing for an asset that is fundamentally not log-normal, creating trading opportunities.

• Diversified: Optimized portfolio consisting of concurrent trades across commodity complex.

• Tactical: Moderate rate of turnover targeting enhanced trade entry/exit.

• Unique: Proprietary signal derivation focusing on intersection of trading psychology and timing.

• Active: Market screening for fundamental, quantitative, and producer/consumer hedging inputs.

• Deliberate:  Trade design and idea expression optimizing for maximum liquidity, positive convexity, and margin efficiency.

• Convexity: power prices, relative to natural gas, oil, coal, and their environmental compliance obligations, can give rise to idiosyncratic volatility and inflection points unlike any others found in commodities.

• Trading: relative value, directional, and options trading strategies are deployed across power delivery locations throughout the US.

• Weather: as with the NG strategy, the power strategy does not look to forecast temperatures as a source of edge, but the resulting weather vol often creates disconnects between the spot and future power markets that can be exploited.