Uncorrelated by nature
Energy markets move on weather, demand, and physical fundamentals — not the factors that drive equities and fixed income. That independence is the point.
Velocity Merchant Energy
Velocity Merchant Energy
Velocity Merchant Energy
An experienced platform manager offering access to power and energy markets — a proven approach, built for uncorrelated returns.
Power, natural gas, and crude are deep, dynamic markets where dislocations are constant — and where experienced, well-supported traders can find opportunity in every cycle.
Energy markets move on weather, demand, and physical fundamentals — not the factors that drive equities and fixed income. That independence is the point.
Our goal is very different from traditional energy hedge funds — and it has proven effective in the returns delivered to our investors.
Everything we do concentrates on two disciplines: risk management and recruiting. Simple to say — very difficult to effectuate.
Our Approach
We hand-pick the traders we believe are the best in the commodity complex — recruited from banks and large energy companies — and give them a platform to make the most of their expertise.
It's our own traders we leverage to make the best hiring decisions in a vast recruiting effort that spans every commodity complex. The search for new talent never stops.
We pay traders more, provide a better environment, and surround them with what we believe is a network of the industry's top talent. The best want to trade where the best already are.
It requires constant software development, supervision, and pruning — and we consider that work our edge.
We encourage our traders to invest with us. In doing so, we align the interests of investors, portfolio managers, and the risk takers themselves.
That direct relationship to risk is an edge we believe most alternative investment managers simply don't have.
Markets
Power cannot be meaningfully stored — supply must equal demand in real time. The dislocations that creates are where expertise earns its keep.
Traded across hubs, basis, and seasons — the bridge fuel of the energy transition, and a market that rewards fundamental work.
The world's benchmark commodity — macro flows expressed through deep, liquid futures and options markets.
"At Velocity, all of our efforts are focused on risk management and recruiting. It sounds simple — but it is very difficult to effectuate."
Leadership
CEO & Risk Manager · Founder & Portfolio Manager
Jack has been an entrepreneur building companies based on financial technology for over 34 years, founding high-volume electronic US equity brokerage firms and futures and commodities brokerage firms before his switch to specifically energy commodity markets with Velocity for the past 20 years. His career began at KPMG Peat Marwick, and he holds a BBA in Finance from the University of Texas at Austin.
Managing Partner & CFO · Portfolio Manager
James brings 15 years of senior-level executive management experience in financial operations and risk in the futures and commodities brokerage space. Now, with a focus in the energy trading space, he manages investment strategies, risk management, trader recruitment and retention. He holds a BBA in Accounting from the University of Houston.
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