Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Thematic (Sector/Industry)

Australia Energy / Thematic (Sector/Industry)

<ul><li>Evidente is launching a new product - <em>Commodity Watch</em> - which is designed to monitor developments in global commodity markets, with a focus on implications for the metals, mining and energy sectors.  <em>Commodity Watch </em>will also typically have a focus article on a topical issue.</li><li>In the inaugural issue, Evidente summarises the key findings of a recently published research paper from the RBA, which finds that the large increase in the size of commodity-related financial markets over the 2000s has had little influence on commodity risk premiums in futures markets.  However, there is a strong relationship between net hedging positions and commodity risk premiums, as suggested by the net hedging pressure theory.</li><li>The renewed weakness in global commodity prices year to date - particularly iron ore - has coincided with a cooling of Chinese residential property markets, which appear to be responding to various tightening measures adopted by local authorities.  Iron ore prices are widely expected to decline further, as low cost global supply comes to market.  The lowest cost producers should out-perform in this environment.  Evidente also develops a measure of mispricing among metals and mining stocks; at present <a href="https://www.smartkarma.com/entities/207" target="_blank" data-smartkarma-citation="entities:207:1">Bluescope Steel Ltd (BSL AU)</a> and <a href="https://www.smartkarma.com/entities/22654" target="_blank" data-smartkarma-citation="entities:22654:1">South32 Ltd (S32 AU)</a> are trading at large discounts.</li></ul>

Evidente is launching a new product - Commodity Watch - which is designed to monitor developments in global commodity markets, with a focus on implications for the metals, mining and energy sectors.  Commodity Watch will also typically have a focus article on a topical issue.In the inaugural issue, Evidente summarises the key findings of a recently published research paper from the RBA, which finds that the large increase in the size of commodity-related financial markets over the 2000s has had little influence on commodity risk premiums in futures markets.  However, there is a strong relationship between net hedging positions and commodity risk premiums, as suggested by the net hedging pressure theory.The renewed weakness in global commodity prices year to date - particularly iron ore - has coincided with a cooling of Chinese residential property markets, which appear to be responding to various tightening measures adopted by local authorities.  Iron ore prices are widely expected to decline further, as low cost global supply comes to market.  The lowest cost producers should out-perform in this environment.  Evidente also develops a measure of mispricing among metals and mining stocks; at present Bluescope Steel Ltd (BSL AU) and South32 Ltd (S32 AU) are trading at large discounts.

Commodity Watch - Financialisation Has Not Driven Commodity Futures, but Net Hedging Pressure Has