Tellurian Capital Management

LLP (Ascend)

Fund Investment Objectives

The Tellurian Commodity ascend strategy is a discretionary, global commodity trading investment strategy using only liquid and transparent futures and options in the main Energy, Metals and Agricultural commodity markets, cleared on the key established futures exchanges. The objective is to deliver positive risk-adjusted returns in up- and down market conditions. The investment methodology is based on a bottom-up, thorough fundamentals analysis of the underlying commodity markets, complemented by a top-down macro approach including the influence of other economic variables on commodity prices and the impact of market positioning and investment flows. Technicals and momentum analysis are also used as a tool to help define entry and exit points, but never as a core rationale to enter into an investment. There is a frequent rotation between commodities and sectors, as well as a very active and dynamic use of the notional invested. There is no structural long term theme in the strategy. The strategy does not use physical, equities or exotic instruments. Options can be used to create asymmetrical pay-off in building the portfolio. The Tellurian approach is characterized by a strong risk management background, and brings extensive commodities trading expertise acquired over long periods of up and down markets.