Corporations – Hedging Services

Global Hedging provides design of hedging strategies for corporations that seek to mitigate their commodity risk in the energy, metals, interest rate, currency and agricultural fields. Hedging strategies are always tailored to the specific needs of our corporate clients and have worked successfully to ensure efficient coverage of today’s volatile markets.  GH advises our clients on strategic ways to smooth commodity price conditions over seasonal business cycles.

Hedging strategies designed vary across different commodities whether it is corn, wheat, natural gas, cooper, gold, currencies or other, we ensure that our hedging products better serve the client’s goals at a minimum cost.

Oftentimes our fees are incentive based so that they are applicable only when our client archives the desired hedging efficiency goal.

Optimized Hedging

In some cases corporations seek to minimize the cost of hedging. Optimized hedging involves actively trading the same commodity where the hedge is taking place. Trading strategies provide opportunity for profits at the cost of risk taking. In the case of obtaining profits, the proceeds are used to offset the initial cost of the hedge.

The gains from hedging may not cover the costs of hedging, The primary objective of hedging is to minimize price risk and this includes using hedging to minimize losses.

CPO Funds Services

Commodity Pools managed by Global Hedging are funds that specialize in specific commodity areas. These funds serve a dual purpose: To provide a niche of opportunity for individuals seeking to profit from trends that develop occasionally in certain commodities, and to indirectly hedge positions in the market previously acquired by corporations in their normal course of business.

Individuals – Defensive Investing

With the major stock markets in the world loosing terrain in the ranges of 40 to 60%, many investors have sought increased diversification with commodities. The GH investment style is active, and it seeks to profit from both long and short positions. GH makes investments by talking advantage of selected opportunities in the commodity markets. On the average GH makes two trades per week in different commodities. The strategy has worked well.

Global Hedging does not believe in leaving an investment portfolio unchanged for more than a few days. As conditions have drastically changed in the last 2 years, our strategists are staying away from “buy and hold” tactics.

Our client’s portfolios are invested for a period from 1 to 8 days and then remain in cash until a new opportunity is detected.

Electronic Trading Platforms

Electronic Trading provides a computerized system that generates trading signals. The automated nature of ‘Buy” and ‘Sell” signals releases the trader and the client from extra duties, decision making and trading stress.

GH recommends only the automated systems that have archived a high rate of return on investment since the system’s release date that in some cases accounts to many years. A license for a computerized trading system has to be purchased individually at the client’s request.