A World Class, Scientific & Systematic Investment Management

Risk is a living thing in our business,and we watch over it carefully

our Approach

We walk alongside some exceptional ideologies which nourishes a strong orientation towards excellence

We’re always looking to improve our investment strategies, measuring our results as we go along. So we can make more intelligent trading decisions, with one eye on generating real alpha, and the other on effectively managing risk.

We are committed to creating value for our Investors by finding companies with complex stories and untapped potential in compelling industries. We form strong partnerships with outstanding management teams and support them with a flexible hands-on approach.

Investing has more to do with trust than it does with chance and windfalls. Trust is an investment unto itself. It requires generous attention and time to establish, but once earned and with care it can span generations. We believe that there is no honor greater than to be the keeper of another’s trust. As the keeper of our clients’ trust, we must conduct business openly and transparently and act diligently, discretely and always in our clients’ best interests.

Our Standards of Practice and Care

At Praxko Capital, going the extra mile is much more than an oft-repeated cliché. Client service means sharing knowledge—our knowledge, with that of an extensive network of professional affiliations and of clients’ experiences spanning multiple industries and generations.

We believe we are a good fit for Investors who seek the insights, expertise, and broad range of financial instruments available to larger institutions without sacrificing the personalized service that such institutions cannot provide. Our services are custom tailored, affording clients the opportunity to determine the level of service that meets their needs while maintaining focus on the creation, enhancement, preservation and legacy of their wealth. Clients may rely on us in many ways that extend beyond the strict definition of wealth creation to encompass large and small concerns alike. We do not write off these things as the cost of doing business; this is our business. This is how we demonstrate our commitment. This is how we exemplify our trustworthiness. This is how we care.

Commodity Derivatives

Commodity derivatives markets have been in existence for centuries, driven by the efforts of commodities producers, users and Investors to manage their business and financial risks.

Producers want to manage their exposure to changes in the prices they receive for their commodities. They are mostly focused on achieving the same effect as fixed prices on contracts to sell their produce. A silver producer, for example, wants to hedge its losses from a fall in the price of silver for its current silver inventory. Cattle ranchers want to hedge their exposure to changes in the price of cattle. Food companies need to hedge the risk of price changes in green coffee, cocoa beans, cereals, milk and other commodities they sell.

End-users want and need to hedge the prices at which they can purchase commodities. A hospital system might want to fix the price at which it purchases electricity for air conditioning during the summer. An airline wants to lock in the price of the jet fuel it needs to purchase in order to satisfy the peak in seasonal demand for travel.

At the same time, Investors and financial intermediaries can either buy or sell commodities through the use of derivatives. They put capital that is essential to facilitating the business of the producer and of the end-user. They stand ready to transact with these market participants; without them, producers and end-users could not hedge their risks.

Today, the commodity derivatives market is global, and includes both exchange-traded and over-the-counter (OTC) derivatives contracts. It consists of a wide range of segments: agriculture, base metals, coal, commodity index products, crude oil, emissions, freight, gas, oil products, plastics products, power, precious metals and weather.

Thousands of companies of all shapes and sizes, in all industries and in all regions use commodity derivatives. Manufacturers, energy companies, farmers, agriculture and food companies, IT companies – these and other types of firms make up the global commodity derivatives markets. They all contribute to the supply of needed commodities for ever-rising earth’s population. In this respect, the first half of the 21st century is a critical moment. The world’s population is expected to reach 9 billion in 2050, creating ever-increasing demands on limited resources and providing a challenge for industrial producers, market intermediaries, policy makers, governments and international organizations.

This leads to concerns about price increases and volatility, as Nobel Prize-winning economist Paul Krugman pointed out in a recent editorial, saying that volatility exists in our markets because we live in a “finite world” where there is not, at any given moment in time, an inexhaustible supply of oil, wheat, milk or other physical commodities to meet the global demand for such products. Simply put, prices are higher because the demand for a product around the globe is greater than the supply.

In a nutshell, fundamental factors will significantly put pressure on production, transportation, storage and delivery of commodities.

Closer to the financial sphere, some government agencies, academics and researchers have also pointed out the important of the linkage between all actors in the commodity derivatives markets: