Navigating Commodity Trading Strategies

Tor Svelland, CIO and Founder of Svelland Capital, has annualized over 18.5% net of fees since inception in 2017 in their strategy that trades a combination of commodity futures, commodity linked equities, freight derivatives, energy transition linked companies, and electricity producers. Svelland joins Other People’s Money to discuss why he believes new market participants and structural undersupply have made the current environment for commodities trading so exciting. He also discusses how he’s grown his business from personal capital to almost $1 billion in AUM with investors all over the globe.

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Timestamps

00:00 Intro

04:09 Trafigura & Goldman Sachs as Commodities Trading Talent Hubs

06:38 Launching Svelland Capital with Personal Capital

09:03 The First Major Hurdles: 3 Years & $100m in AUM

10:56 ESG and the Commodity Market Backdrop

15:59 Underinvestment & Undersupply in Shipping & Commodities

20:41 Trading Global Supply Chains Shifts

23:44 Trade Expression & Commodities Portfolio Construction

29:06 The Effects of New Commodity Market Participants

36:06 TTF Gas Markets & Price Spike Potential

39:38 Multiple PMs & The Benefits of Taking Risk

42:05 Thinking Internationally & Advice for Young Commodities Traders

45:56 International Investor Interest in Commodities

48:00 Managing AUM Growth & Capacity Constraints