The RLA I Managed Futures Program is administered by Ronald L. Anderson whose past experience includes managing the Crush, Fundamental, and Ag Spread programs at Kottke Associates. The program centers on the Soybean Crush complex. Ron’s trading methodology is based on fundamental analysis, in that he examines external factors that affect supply and demand, such as weather, governmental policies and import-export activity.
Investment Strategy
The RLA I Program is a discretionary managed futures program that attempts to identify fundamental changes in supply and demand that will correlate to and be highly predictive of cash market movements. The program primarily trades futures and options on futures contracts on soybeans and soybean products, i.e., soybean meal and soybean oil, traded on the Chicago Board of Trade (CBOT).
Spread Trading
Most transactions are “spreads” designed to take advantage of perceived price disparities between the futures markets for soybeans and soybean products and their underlying cash markets.
The majority of spread transactions entered into are “crush” and “reverse crush” spreads, which anticipate changes in the dollar value of the difference between the cost of soybeans and the combined sales values of the products of soybeans – soybean meal and soybean oil – that are not reflected in the current futures prices for these products. In lieu of futures contracts, and only if sufficient liquidity develops, the program may purchase options on futures contracts in the crush spread.
In addition to crush and reverse crush spread transactions, the RLA I Program may also enter into spread transactions in the individual contracts underlying these spreads, as well as inter-commodity spreads comprising just two of the three soybean-related contracts and inter-commodity spread transactions on other agricultural products.
Risk Management
The RLA I Program may choose to enter into option positions to offset volatility risk and it may also enter into directional trades through the use of options and option spreads, i.e. call spreads and put spreads.
Occasionally, and not as a primarily vehicle for trade, this managed futures program may enter into directional trades via buying and selling futures outright or in combination with options positions. Option trading and directional trades will not be primary members of the portfolio but will be traded on an opportunistic basis. Returns are based on pro-forma adjustments to a proprietary account to reflect fees.
RLA I Program at a Glance
- Program Type: Discretionary
- Minimum Initial Investment: $500,000
- Fee Structure: 2% Management fee, 20% Incentive fee
Proprietary Pro-Forma Returns From Inception 1/1/2009 to Present
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 0.16% | -0.22% | -0.09% | -0.48% | -0.64% | ||||||||
| 2022 | -0.23% | 0.45% | -0.12% | 0.29% | -0.34% | -1.56% | -0.82% | 1.17% | -0.06% | 0.10% | -0.01% | -0.29% | -1.44% |
| 2021 | 0.63% | 0.30% | -0.16% | 2.94% | -0.60% | -0.95% | 0.04% | 0.01% | -0.31% | 0.39% | -0.81% | -0.03 | 1.42% |
| 2020 | -0.61% | -1.54% | -6.12% | 1.11% | 0.84% | 1.36% | -1.67% | -0.19% | -2.17% | -3.43% | 0.72% | 0.41% | -10.97% |
| 2019 | 0.35% | 3.55% | -0.24% | -0.74% | 1.86% | -1.75% | -0.38% | -0.39% | 0.66% | -0.40% | 1.20% | -0.81% | 2.84% |
| 2018 | 1.06% | -3.26% | 0.46% | 1.23% | -1.25% | 4.90% | -1.87% | 1.90% | -0.03% | 1.54% | -0.66% | 0.30% | 4.16% |
| 2017 | -3.51% | 2.37% | 1.36% | -1.77% | 0.59% | 2.91% | 0.83% | -1.05% | 0.74% | -1.45% | -4.45% | -0.77% | -4.39% |
| 2016 | 0.36% | 3.42% | -2.48% | -12.53% | -2.83% | 9.72% | -7.09% | 3.04% | 8.88% | -2.35% | 0.37% | -0.47% | -4.02% |
| 2015 | -2.05% | -2.12% | 0.28% | -1.32% | 1.38% | -8.82% | 2.05% | -1.13% | 1.71% | -4.40% | 4.28% | 10.14% | -1.18% |
| 2014 | -3.86% | 0.60% | -2.12% | -0.20% | -0.80% | 1.09% | 0.65% | 12.07% | -0.38% | 22.52% | -1.09% | -1.44% | 27.16% |
| 2013 | 1.19% | 3.93% | 1.38% | -2.37% | -1.07% | 0.00% | 2.16% | -1.21% | 0.52% | 3.43% | -4.23% | 4.32% | 7.95% |
| 2012 | -0.86% | 0.27% | -0.61% | 0.84% | -1.34% | 8.24% | 10.97% | -1.22% | 0.18% | -0.13% | 2.73% | -1.49% | 18.08% |
| 2011 | -0.38% | -0.63% | 3.37% | 2.72% | -0.49% | 4.70% | 0.73% | 1.25% | -2.00% | 0.34% | 0.17% | -0.39% | 9.59% |
| 2010 | 2.00% | -0.01% | -0.67% | 5.86% | 0.74% | 3.93% | -2.55% | -1.73% | -10.08% | -0.22% | -1.12% | 1.44% | -3.23% |
| 2009 | 0.36% | 1.11% | 1.38% | 4.32% | 4.69% | 1.73% | 3.58% | 8.00% | -4.29% | -3.60% | 4.73% | 1.90% | 25.89% |
Note: past performance is not indicative of future results
The performance set forth above is for a proprietary account maintained by a principal of County Cork traded pursuant to the RLA I Program. The performance has been pro forma adjusted for a 2% (annualized) monthly management fee and a 20% quarterly incentive fee that would have been charged to a customer account participating in the Program as well as Commissions and fees of $5.00 / side, with profits not reinvested. Please note that actual customer accounts have been traded pursuant to the Program. County Cork has chosen to use performance of a proprietary account in this presentation as it has continuously operated since inception. 1/1/2009
A program composite of client account performance is available upon request.
Ronald L. Anderson, Manager
Ronald L. Anderson began his career in commodities in 1967 as a grain trader for Continental Grain Company at the Minneapolis Grain Exchange (MGEX) and eventually became Senior Vice President and General Manager of Continental Grain Company’s World Oilseed Processing Division. For over 25 years at Continental Grain Company he was involved directly in the development, operation and eventual disposal/sale of oilseed crushing plants in the U.S., United Kingdom, Italy, Brazil, Australia and Argentina.
Presently Mr. Anderson is President of RLA Consulting and RLA Trading LLC, an Introducing Broker for the FCM R.J. O’Brien, and is active in Commercial Brokerage, Structured Program Trading, and Oilseed Crushing & Refining Consulting. He is a graduate of South Dakota State University with a degree in Agricultural Education and is a veteran of the U.S. military.
Bernie Kane, Co-Manager
Mr. Kane joined County Cork in 2017 as a co-portfolio manager of the RLA Program. Prior to joining County Cork, he was the founder and Chief Investment Officer of Meech Lake Commodity Fund. Before that he acted in differing capacities from managing director to senior trader for firms such as Gelber Group, Fuji Securities (now Mizuho Banking Group) and Merrill Lynch Securities. Previous to that he was a senior auditor at Arthur Andersen. He holds a B.S. degree in Accounting from the University of Illinois and an M.B.A. from the Booth School of Business at the University of Chicago