Climber Capital’s Commodity Exit

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On February 3rd, 2026, Climber Capital SA filed notice of a complete divestment of its holdings in the First Trust Global Tactical Commodity Strategy Fund (FTGC). The transaction, valued at approximately $3.46 million based on quarterly averages, suggests a reassessment of risk within the commodity sector.

A Shift in Perspective

The full exit from FTGC, comprising 144,878 shares, represents a notable shift. It is not merely a trimming of exposure, but a complete withdrawal. The net effect on Climber Capital’s portfolio is a reduction of $3.4 million, a figure that, while substantial, must be viewed in the context of the fund’s overall holdings.

Portfolio Adjustments and Underlying Logic

Climber Capital’s actions are not isolated. The fund has demonstrably increased its allocation to equities and fixed income instruments. As of the latest filing, VOO (Vanguard S&P 500 ETF) represents 10.5% of the fund’s assets under management (AUM), totaling $16.2 million. GLD (SPDR Gold Trust) accounts for 10.0%, or $15.4 million, while SPSB (SPDR Portfolio S&P 500 Bond ETF) and SHV (iShares Short Treasury Bond ETF) together represent nearly $15 million. These moves suggest a calculated bet on a strengthening economic outlook.

  • Climber Capital’s position in FTGC is now effectively zero, representing a negligible portion of its AUM.
  • Top holdings, as of the filing, include VOO ($16.2 million), GLD ($15.4 million), SPSB ($7.5 million), SHV ($7.3 million), and SDY ($6.3 million).
  • As of February 2nd, 2026, FTGC shares were trading at $24.29, a decline of 10.4% from their 52-week high.
  • FTGC delivered a one-year total return of 15.5%, lagging the S&P 500 by 1.46 percentage points.
  • Previously, the FTGC position constituted 2.2% of the fund’s AUM.

Examining the Fund Itself

The First Trust Global Tactical Commodity Strategy Fund is an actively managed ETF with a considerable market capitalization ($2.29 billion). Its stated objective is to achieve risk-adjusted returns through a diversified portfolio of commodity futures, instruments linked to commodities, and total return swaps, executed through a Cayman Islands subsidiary. This structure, while potentially advantageous from a tax perspective, adds a layer of complexity that demands scrutiny. The fund’s reliance on futures contracts and swaps introduces inherent volatility and the potential for tracking error.

Metric Value
AUM N/A
Price (as of market close 2/2/26) $24.29
Dividend yield 16.69%
1-year total return 14.36%

Interpreting the Signals

The decision to liquidate the FTGC position coincides with a period of softening commodity prices, particularly in oil and agricultural products. This is not a coincidence. Climber Capital appears to be acting on a reasoned assessment of the market, anticipating further declines. The shift towards equities and bonds suggests a belief that these asset classes offer more compelling return prospects in the current environment.

The strengthening of the purchasing managers’ index (PMI) in the fourth quarter of the previous year provides further justification for this move. A robust manufacturing sector is typically a harbinger of broader economic growth, benefiting equities across various industries. Moreover, the two recent rate cuts by the Federal Reserve have created a more favorable environment for dividend-paying stocks (SDY) and bond funds (SPSB and SHV). These factors, combined with the deteriorating outlook for commodities, likely informed Climber Capital’s decision. It is a pragmatic adjustment, reflecting a disciplined approach to portfolio management, and a willingness to adapt to changing market conditions. The fund is not engaged in speculation, but in calculated risk mitigation.

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2026-02-05 21:02