New Agriculture CTA: Demeter Capital Management LLC
Demeter Capital Management is a registered CTA with a Livestock and Grain Trading Futures and Options Program. The Livestock and Grain Trading Program attempts to generate profits through the Advisor’s discretionary selection of futures and options trades in agricultural markets. The Key Principals of Demeter Capital Management are brothers James Hamman and David Hamman. Their father Fred Hamman was one of the first to trade the Live Hog Futures contracts when the commodity was introduced by the CME in 1967. Both brothers attended Hinsdale Central High School and received degrees from the University of Illinois Champaign-Urbana. Jim received his degree in Agricultural Economics and Dave received his degree in Agricultural Industries.
The Livestock & Grain Trading Program attempts to generate profits through the Advisor’s discretionary selection of futures and options trades in these specific agricultural markets (Livestock & Grain). Trades are selected on the basis of fundamental analysis, which is concerned with any factor that would affect the supply and demand, and therefore the price, of a given instrument. The Advisor’s market analysis tends to focus on seasonal trends and year-to-year comparisons. The Advisor absorbs and interprets a wide range of research on a daily basis, employing its principals’ combined 40+ years of experience in agricultural futures markets. However, there is no assurance the Program will meet its objectives or that clients will avoid substantial losses.
In keeping with its principals’ expertise, the Program is restricted to agricultural markets. The Advisor may trade in futures, and options on futures, in any of the following markets: Lean Hogs, Live Cattle, Feeder Cattle, Corn, Soybeans, Soybean Oil, Soybean Meal, Wheat, Kansas City Wheat, Cotton, and Sugar. The Advisor generally will hold positions from one to five weeks. However, occasionally positions will be offset or liquidated in the same day they were initiated, or held for periods of ten weeks or more.
The Program generally involves trading spreads in the futures, and purchasing options outright. However, the Advisor occasionally may initiate a flat (non-spread) futures position (either long or short). The Advisor seldom sells options (puts or calls) outright to capture premium, except in cases of a call/put spread (buying one strike while selling another strike). The Advisor generally does not attempt to straddle markets to capture premium (selling out of money calls/puts).