newsletter 11102016 final volume 2 issue 7-1
TRANSCRIPT
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SIGNALS
We economists would call the
Cubs World Series victory a
“Black Swan” event. What the
2016 Cubs should teach us is
that Black Swans are
real. Just because
something has never
happened, just be-
cause something has
not happened in a
long time, or just be-
cause the chance of
something happening
is near zero does not mean that
it can’t or won’t happen.
One hundred and eight, that’s
right, it took the Cubs 108 years
to win the World Series. For Cubs fans,
it seems longer… it may as well be a
million and eight because it had not
happened in our lifetime, and it would
not happen in our life-
time because the Cubs
are cursed. There have
been some close
calls... the Cubs have
flirted with greatness,
but the “Curse of the
Billy Goat” always held
true. After an epic sea-
son and a miracle comeback being
down 3 games to 1 in the World Series,
they did it! The Cubs won the World Se-
ries, and it only took a short 108 years.
108 BLACK SWANS
I N S I D E T H I S I S S U E :
Swans Continued 2
Precious Metals 3
Crude Oil 5
Natural Gas 7
Cattle 9
About EQS 10
Terms and Disclosures 11
E Q S T R A D E R E C O M M E N D A T I O N S
T H E S OU RC E
F O R C O MMOD ITY
T RA DING S IG NA LS
Volume 2, Issue 7 November 10, 2016
An EQS Publication on the Commodity Markets
©
Commodity Symbol Daily SettleDaily Price
Change
Current
PositionEntry Date Entry Price Stoploss
Actual Current
Position Return
Actual
MTD
Return
Actual YTD
Return
Actual Average Annual
Return Since Inception
(Oct 2015-current)
Actual Sharpe Ratio
Since Inception
(Oct 2015-current)
Back-tested Average
Annual Returns
(past 11 Years)
Back-tested
Sharpe Ratio
(past 11 years)
WTI Crude Oil CLZ16 45.27$ 0.29 Short 10/21/2016 50.43$ 2.62% 11.39% 2.93% -2.73% 8.69% 0.13 57.31% 1.47
Brent Crude Oil EBF17 46.36$ 0.32 Short 10/19/2016 51.68$ 2.95% 11.04% 3.70% 12.62% 19.27% 0.51 61.07% 1.61
Diesel HOZ16 1.4411$ 0.00 Short 10/24/2016 1.57$ 2.95% 7.50% 5.10% -24.78% -2.50% -0.15 38.88% 1.23
Gasoline RBZ16 1.3572$ (0.01) Short 10/27/2016 1.48$ 2.90% 8.80% 9.13% -6.93% -13.25% -0.25 76.13% 1.69
Natural Gas NGZ16 2.690$ 0.06 Long 6/1/2016 2.29$ 3.20% 15.32% -8.52% -7.11% 27.93% 1.07 77.68% 1.46
Gold GCZ16 1,273.50$ (1.00) Short 10/13/2016 1,253.80$ 1.04% -3.07% -0.14% -8.03% -12.01% -0.66 22.22% 1.27
Silver SIZ16 18.38$ 0.02 Short 10/3/2016 19.21$ 0.77% -4.51% 0.99% -15.35% -6.67% -0.49 110.05% 2.48
Live Cattle LCZ16 103.48$ 0.88 Short 9/9/2016 101.40$ 1.30% 3.66% 1.54% -5.40% -6.31% -0.83 16.70% 1.29
EQS Portfolio (see note below on allocation) 8.08% -0.34% -4.89% 12.75% 0.88 47.12% 2.80
Month EQS Portfolio GSCI SG CTA S&P Year EQS Portfolio GSCI SG CTA S&P
Oct-15 8.69% 1.28% -1.20% 8.30% 2005 57.18% 38.79% 3.08% 2.86%
Nov-15 4.44% -7.59% 2.66% 0.05% 2006 70.84% 0.30% 5.75% 13.62%
Dec-15 7.21% -7.04% -1.35% -1.75% 2007 27.68% 40.62% 8.05% 3.53%
Jan-16 -2.10% -3.54% 4.18% -5.07% 2008 58.86% -43.28% 13.07% -38.49%
Feb-16 1.16% 1.05% 2.97% -0.41% 2009 54.67% 51.95% -4.30% 23.45%
Mar-16 -2.46% 6.01% -3.00% 6.60% 2010 42.61% 20.76% 9.26% 12.78%
Apr-16 -3.06% 11.68% -2.22% 0.27% 2011 53.99% 2.05% -4.45% 0.00%
May-16 1.61% 2.69% -2.04% 1.53% 2012 60.76% 0.19% -2.87% 13.41%
Jun-16 2.90% 1.09% 4.52% 0.09% 2013 32.08% -2.34% 0.73% 29.60%
Jul-16 1.24% -9.35% 1.24% 3.56% 2014 27.21% -33.77% 15.66% 11.39%
Aug-16 -4.80% 2.59% -3.12% -0.12% 2015 32.39% -25.51% 0.03% -0.73%
Sep-16 0.01% 4.60% -1.20% -0.12% 2016 NA NA NA NA
Oct-16 -0.91% -0.65% -2.57% -1.94% Average Return 47.12% 4.52% 4.00% 6.49%
Annual Return 12.75% 0.68% -1.47% 9.91% Sharpe Ratio 2.80 0.13 0.55 0.34
Sharpe Ratio 0.88 0.18 0.15 0.91 Max Draw Down -11.98% -66.15% -12.58% -56.78%
Max Draw Down -12.74% -27.97% -8.83% -13.31% Correlation 1.00 (0.05) 0.09 (0.09)
Correlation 1.00 (0.49) 0.20 0.27
BENCHMARKS VS EQS ACTUAL BENCHMARKS VS EQS BACKTESTNo leverage used on individual commodities. Leverage used in portfolio in on average 1.0. Daily stop loss recommendations are applied to postions. Estimates are in Italics. Actual results of trade signal recommendations
published by EQS Trading are shown in brown font. Back-tested performance is shown in Red Font. Portfolio returns are net management and performance fees.
Portfolio allocations for actual results are:• 55% Oil/products, 45% Natural Gas (Oct-Dec 2015).• 45% Oil/products, 35% Natural Gas, 20% Precious Metals (Jan-July
2016).
• 40% Oil/products, 30% Natural Gas, 20% Precious Metals, 10% Livestock (Aug 2016-current).
Portfolio allocation for back-test results are: 40% Oil/products, 30% Natural Gas, 20% Precious Metals, 10% Livestock.
Benchmarks include the GSCI (Goldman Sachs Commodity Index), SG CTA (Society Generale CTA Index which tracks performance of top Commodity Trading Advisors), and the S&P 500.
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The American economy has not had a depression since one began in 1929 and
ended in 1939. Like the Cubs making the playoffs; the economy has flirted with
the big one — a few reces-
sions since 1939, but simi-
lar to the Cubs, the Curse of
the Billy Goat lingers and the
FED has kept a depression
at bay.
The Great Recession of
2007-2009 should have
been a wake-up call. Eco-
nomic cycles are real, and
you can’t grow forever. His-
tory will show if government
intervention from the FED is the right thing to do, or if the FED is really the Curse
of the Billy Goat, and when those Black Swans come swimming in, nothing can
protect us from a total collapse.
It would seem like “good times” are here again. The DOW, NASDAQ, and S&P are
at or near all-time highs, and interest rates are still historically low (even if the
FED rises in December). Building is booming again, and the labor market is
strong. What could possibly go wrong? Ask the Cleveland Indians; they were up 3
-1, the World Series was theirs to win, and after all, it has been 68
years since Cleveland won it all. The economy is in a dogfight of a
baseball game, and we are nearing the 9th inning. Can the FED cre-
ate a rain delay and take us to extra innings?
The Cubs won the World Series and it only took 108 times, but it
did happen. We live in a small and connected world. Very small
problems can turn massive in a blink of the eye. Black Swans are
real, and even though they don’t swim by every day, we should be
prepared.
Just like cheering for a losing baseball team for 108 years, going
through a recession is not fun. The reality is that you cannot win
every year, and losses get you much closer to winning. The reces-
sion is one of those necessary evils; it is the forest fire that is needed to clear
out the underbrush to keep the next fire from totally destroying the land. The
economy is on a nice long winning streak, but a loss is around the corner. Can
the FED keep that loss at bay, or will the next loss be the Black Swan that the
Cubs have shown is very much alive and well? At least the Billy Goat is dead,
may he rest in peace.
108 BL AC K SWA NS (CO NT I NU E D )
The American economy has
not had a depression since one
began in 1929.
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The rise in gold prices has been impressive during 2016, starting the year at
$1063/ounce and rising as high as $1375/ounce. Gold prices seem poised
to close the year higher, reversing the yearly declines during each of the past
four years. The postponement of interest rate hikes by the Fed has been a
key contributor to 2016’s gold performance. The Fed hiked rates in Decem-
ber of 2015, the first time since 2006, and stated that four more interest
rates hikes were in the cards for 2016. Many analysts were on board with
the Fed’s thinking, and Goldman Sachs announced that its highest convic-
tion trade was to “short” gold. Gold tends to have an inverse relationship
with interest
rates as high-
er rates make
gold less at-
tractive
against yield-
bearing as-
sets like
treasuries.
However, we
are yet to see
the Fed hike
interest rates
this year. Last Wednesday, the Federal Reserve left interest rates un-
changed, but indicated that it would likely move in December. Some analysts
are skeptical that Fed will raise rates as the US economy is still too fragile
with anemic GDP growth, which is on average less than 2% during the first
three-quarters this year. Rising rates might tip the global economy into reces-
sion, but at the same time, extended periods of low rates have encouraged
the accumulation of massive amounts of debt in governments and in the pri-
vate sector. The IMF warns that global debt has ballooned to an all-time high
of $152 trillion and represents 225 percent of the gross domestic product,
and signifies the extent to which increases in borrowing have outpaced eco-
nomic growth dur-
ing the period.
Hence, it is easy
to see why the
Fed is cautious to
raise rates con-
sidering the huge
amounts of debt,
but at the same
time, the econo-
my needs rates to
rise to hinder the
urge to borrow.
P R E C I O U S M E T A L S , I N T E R E S T R AT E S , & G L O BA L D E B T
The IMF warns,
global debt has
ballooned to an
all-time high of
$152 trillion and
represents 225
percent of gross
domestic product.
Bearish
1.00
1.10
1.20
1.30
1.40
1.50
1.60
1.70
1.80
1/4/16 2/4/16 3/4/16 4/4/16 5/4/16 6/4/16 7/4/16 8/4/16 9/4/16 10/4/16 11/4/16
Expected Inflation: 10-year T-note Breakeven Rate
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It’s important to emphasize that the Fed does not control interest rates. The Fed can influence rates
through its actions, but in the long run, the market ultimately determines the direction of interest rates.
Although it is possible that the Fed may not raise rates this year and the next, rates may move higher
as determined by the laws of supply and demand. Consequently, the lack of clarity regarding price di-
rection has caused the range bound action in gold since the middle of the year.
The potential for rising interest rates may not be all bad news for gold. A modest rise in nominal rates
shouldn’t be too hard on gold as long as there is enough inflation to ensure that “real” interest rates
remain low. The real interest rate allows for the effects of inflation and the 10-year T-note breakeven
rate, which represents a measure of expected inflation, posted a 1-year high recently (see chart on pre-
vious page). If inflation continues to rise relative to interest rates, it may be time to add length to pre-
cious metals.
Technically, EQS is keeping an eye on a key resistance line that has been in place since 2011. This line
has been tested many times this year, and most recently, Tuesday evening on the news of a Trump vic-
tory, where gold rallied as much as 5% – the market does not like surprises as expectations were for a
Clinton victory. So, when the news began to surface that Trump took the lead, the equity market
tanked, and gold was boosted as a safe haven trade. However, by the end of the day, equities bounced
back and gold sold off sharply after testing the resistance line. In conclusion, until inflation shows
signs of a sustained rise and until gold prices breach the resistance line, EQS recommends staying
short.
PR E C I O U S M E TA L S (C O N T I N U E D )
Gold Price Weekly Chart
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The oil market appeared to be breaking down during late September until
OPEC surprised the market by announcing a cut in production at the
meeting in Algiers on September 28. Just before the announcement, pric-
es were trading near $44/bbl, and a 3 handle seemed imminent. Howev-
er, the announcement hit the airwaves of an agreement to cut production
and prices staged a furious reversal and broke through key resistance
levels. The Algiers announcement came as a surprise because OPEC
downplayed the meeting before the announcement, stating that “the
meeting would be informal for consultations and not for decision mak-
ing.” The announcement to cut production allowed market sentiment to
turn around and prices eventually marched upward toward $52/bbl dur-
ing the next several weeks.
Of course, the deal in Algiers came with a catch! OPEC announced that
the agreement was preliminary, and the final details would be worked out
during its meeting in Vienna on November 30th. The Deputy Crown
Prince, Mohammed Bin Salman has made clear his ambition to reduce
Saudi’s fiscal deficit in 2017, and indeed, higher oil prices are a goal of
his. However, this goal is harder than it seems as the Saudis continue to
lose market share to US Shale oil. As seen from the following chart, the
shift in market share appears to have an inflection point in 2010 and US
Shale has continued to gain market share since. Further complicating the
situation is the re-entry of Iranian oil production following the removal of
sanctions. Analysts suggest oil prices in the $40-$60/bbl range suites
Saudi Arabia’s fiscal goals and this makes sense as OPEC tends to inter-
vene when prices approach or drop below $40/bbl.
To determine Saudi Arabia’s next move as well as the outcome of the Vi-
enna meeting, let us consider game theory. Achieving higher oil prices
and gaining market share are the primary objectives of the Saudis head-
ing into the Vienna meeting. With the oil market oversupplied, a coordi-
nated cut
among OPEC
members
would take a
step towards
addressing
the supply
problem, and
perhaps sta-
bilize oil pric-
es for the
time being.
Oil, OPEC, and Game Theory
Commitment of Traders report
shows that after the Algiers meeting, speculator net
length continued to increase and hit an
all-time record.
Bearish
Oil Market Share — SA vs. US
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However, even though an agreement to cut production would temporarily send
prices higher, any cut by OPEC would be offset by gains in production from US
Shale. Hence, OPEC cutting production would cause them to lose further market
share to the US. This is evident because US oil rigs have rebounded with higher
prices, and although oil production declined for some time, it seems to be pick-
ing up again. Given this, Saudi Arabia’s next move is not as straightforward as it
may seem.
Although many scenarios could be imagined using game theory, I narrowed it
down to two. The first scenario suggests that Saudi’s view is that the global
economy is growing enough to support a robust outlook for oil demand, which is
reasonable considering the October global composite PMI of 53.3. The Saudis
may then feel there is enough oil demand to go around so to speak, and there-
fore, it makes sense to cut production to stabilize prices. This scenario seems to
be what the market is expecting. However, humans are competitive by nature,
and because this scenario does not address the market share issue with US Shale, it could present a problem
at the upcoming meeting.
So this brings me to the second
scenario which is extreme and
involves market manipulation and a way for OPEC to gain financially
while riding the oil roller coaster
ride and inflict pain on US shale.
Consider the following: Just be-
fore the Algiers announcement
(recall oil was trading at $44/bb),
OPEC speculates and buys oil fu-
tures and then announces the deal to cut production, knowing that prices will
rise. After the announcement, OPEC continues to buy oil futures to influence the
market. Note that the Commitment of Traders report shows that after the Algiers
meeting, speculator net length continued to increase and hit an all-time record,
which OPEC could be a major part. But this scenario does not stop here. Prices
continue to gain in momentum and eventually exceed $50/bbl at a point when
OPEC starts unloading their long positions and begin shorting oil futures to
hedge their production. OPEC members continue to talk up the November 30th
meeting, announcing to the press that a deal is likely. Then November 30th
comes along, and the Vienna meeting takes place, and it falls apart with OPEC
not reaching an agreement to cut production. Oil prices, then collapse
and head to $20/bbl as 2016 comes to a close. Remember, OPEC
financially hedged their position at over $50/bbl, so they are not af-
fected by the price slide. This scenario may seem extreme and unlike-
ly, but it financially benefits OPEC from the oil price roller coaster, se-
cures their production price at over $50/bbl, and allows them to gain
market share from US shale producers. Such a situation is plausible
by game theory and would confirm that OPEC has indeed mastered
the art of market manipulation. Either way, EQS mentions these sce-
narios because they should factor in your trading playbook in the
weeks leading up to, during, and after November 30th.
Oil (Continued)
Commitment of Traders report
shows that after the Algiers meeting, speculator net
length continued to increase and hit an
all-time record.
Bearish
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From January to mid-October, natural gas prices rose a remarkable 50% from
$2.24/mmbtu to $3.36/mmbtu. But since peaking October, prices have con-
tinued to slide. A chart of the 12-month strip on the following page illustrates
what a roller coaster ride the month of October has been. During the week of
October 25th, the chart illustrates that prices
broke through a major support level and col-
lapsed. Technical analysis reveals that once
support is broken, it becomes resistance and
the chart is a perfect illustration of this concept
as prices rebounded only to later fail once
touching the level again. Another application of
support becoming resistance can be seen in the prompt month weekly fu-
tures chart for natural gas. As the following chart illustrates, prices gapped
down and broke through the support during mid-December 2014, after which
triggered and downhill slide in prices for 2015. Prices began to rebound in
2016 and eventually made it back to the line where the gap was and failed
this level. This particular line is important, and natural gas must settle above
this line in order to take a run at the $4 level.
We have discussed in prior newsletters how the combination of reduced as-
sociated gas, declining production, and increased power demand for natural
gas have all played a part in natural gas’s rise in prices during 2016. When
oil prices are high compared to natural gas prices (like a couple of years ago),
producers drill in regions that produce oil primarily, and although the wells
are labeled “oil wells,” associated natural gas is produced with the oil, re-
gardless if the market needs the natural gas or not. Natural gas became so
abundant as a result of the shale boom that when drilling for oil, the associat-
ed natural gas was cheaper to flare than transport off to sell it.
N AT U R A L G A S — TH E B U L L S A R E T A K I N G A S I E S TA . . .
Since September 2015, associated
gas production has fallen by nearly 9% or about 2.5 billion
cubic feet a day, according to Bentek
data.
Bullish
Bullish Factors Dominate
Natural Gas Prompt-Month Weekly Chart
Gapped Down
Support
Resistance
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Today, it’s different. Low crude prices have lead US oil producers to idle more
than a thousand rigs over the past two years, resulting in a big decline in as-
sociated gas. Associated natu-
ral gas typically represents
40% of total supply, but its
production isn’t particularly
responsive to gas prices. Since
September 2015, associated
gas production has fallen by
nearly 9% or about 2.5 billion
cubic feet a day, according to
Bentek data. That drop is
enough to fuel 13 million US
homes daily, and while natural
gas heats about half of all US homes, another third are heated by electricity
which is increasingly generated by burning natural gas.
Increased demand from the power sector has also been a factor in rising pric-
es as 24% of 2016 new additions in the power sector are dedicated to natu-
ral gas, due to stricter environmental standards. Although natural gas is gain-
ing market share from coal and oil, heating degree days have been half of
normal levels this time of year, meaning less commercial and residential de-
mand and a cold winter may be needed to shrink the ever-growing surplus in
storage. This past week, natural gas storage rose above the bearish 4 TCF
psychological mark which makes the second breach of this level two years in
a row. Although US gas production in September was about 2.4% lower than
a year earlier, and down 2-5% from its peak in February, it has not, however,
fallen enough to make a dent in storage.
EQS is bullish on natural gas and prices around
$2.55/mmbtu seem to be an attractive entry. As
illustrated in the chart above, natural gas prices are
the cheapest among the fossil fuels for power gen-
eration and oil prices are low enough to discourage
production of associated gas. The 4 TCF storage
level is behind us and winter is upon us and there-
fore the time to buy is now. EQS realizes, however,
the market needs a catalyst to turn market senti-
ment around. A jolt of cold weather with above nor-
mal heating degree days could trigger the reversal,
but until then, beware as prices could overshoot to
the downside.
NAT U R AL GAS (CO NTI NU E D )
Natural Gas 12-Month Strip
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Beginning in 2015, cattle prices have and continued to drop off a cliff. The
precipitous drop was actually preceded by a sudden boom, following a com-
mon pattern for commodity prices. In the fall of 2014, cattle prices hit record
highs due to strong demand and a lack of inventory, leading many ranchers
to acquire more land and invest in producing more animals. In 2014, the to-
tal number of cattle in the United States fell to a 70-year-low, partly due to a
drought. The tight
supply caused
prices to rise to
historical levels,
and many ana-
lysts expected
those prices to
last three or four
years, but instead
they suddenly be-
gan to collapse in
2015.
Before the price
collapse, the Unit-
ed States had been in a rebuilding phase, where cattle operations were fo-
cused on producing more animals. This was expected to eventually bring
down the price as with most commodity cycles when the price shoots up and
gives everyone an incentive to rebuild. But new supply in the cattle market
does not happen overnight. When you rebuild, there’s a two-year lag before
everyone brings animals to the market and an overreaction in prices can oc-
cur in the meantime.
Ranchers got between $2.50 to $2.75 per pound as recently as a year and a
half ago, but those same animals are now fetching be-
tween $1.10 and $1.30 per pound. The crash in prices
has thousands of ranchers all over the US scrambling to
try to save their livelihoods. According to analysts, ranch-
ers in the US on an average break-even at about $1.65
per pound, and because prices are about 30 cents below
that, many ranchers are losing money.
EQS remains bearish on cattle prices as the supply and
demand balance is currently in surplus. However, with the
price so far under breakeven, we are searching for an in-
flection point. Until this occurs, the trend is your friend,
and the direction is still pointing down.
CATT LE M AR K ET —B O OM A N D BU S T
In 2014, the total number of cattle in the United States fell to a 70-year-
low, partly due to a drought.
Bearish
Live Cattle Prices: Boom and Bust
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Services
Through its
subscription
service, EQS
Trading pro-
vides traders
and hedgers
easy to follow
trading signals
for major
commodity
futures mar-
kets, including
crude oil, natural gas, gold, silver and many others. Now, strategies used by
institutions and hedge funds are at your fingertips. The subscription service
includes both daily trading signals and the weekly Signals Newsletter, which
provides in-depth insight to the commodity markets.
EQS Capital Management also offers a commodity hedge fund (EQS Commodity
Fund LLC), which employs the same signals in its subscription service in a pri-
vate placement fund for accredited investors and institutions. Because EQS uses
a “long” and “short” strategy, it is designed to generate returns, regardless of
which way the market is moving. EQS Commodity Fund imbeds strict risk man-
agement principles through diversifying its portfolio (energy, metals, and agricul-
ture) and actively managing stop loss limits.
About EQS
Economic Quantitative Strategy (aka EQS) is an investment and trading strategy
that translates economic data and technical indicators into price direction for
commodities. Because of its quantitative nature, EQS has been rigorously back-
tested with 15 years of historical data to ensure the strategy works in a variety of
market conditions. Furthermore, because the global economy changes over
time, EQS employs dynamic parameters that evolve as the market changes.
About Us
Management
Richard C. Rhodes
Mr. Richard C. Rhodes is the President
and Founder of EQS Capital Management
(EQS). Richard holds a Bachelor of Sci-
ence in Mechanical Engineering from
Texas A&M University with honors and a
Masters of Business Administration from
Duke University. He brings over 23 years
of diverse experience covering all phases of the commodities value chain
from producer to end-user. Richard possesses 14 years of leadership experi-
ence and spent the last 15 years of his career developing trading, investment,
and risk management strategies in the commodity sector. Richard is a li-
censed Series 3 Commodity Trading Advisor with the Commodity Futures
Trading Commission and a member of the National Futures Association.
In 1991, Richard started his profession on a drilling rig in West Texas with
Conoco and then continued his career with Koch Industries (Ranked as the
largest privately owned company in the US) where he worked in midstream,
refining, pipeline, and distribution operations and led a strategic technology
initiative which earned a top 5 finalist for the 1999 Smithsonian Award in the
Field of Environment, Energy, and Agriculture. With Koch, Richard began as
a project engineer and later found his true passion in trading, which leveraged
his twin interests in mathematics and economics. During this transitional
period, Richard turned his deep appreciation of the physical commodities
business into a trading edge in the financial markets. After 8 years with Koch,
Richard joined Progress Energy in 2002 (now Duke Energy, the one of the
largest utilities in the nation) where he launched several grass-roots trading
programs, which ultimately grew to assets over $500 million with an average
return of 23.5%. During his successful 10-year career at Duke Energy, Rich-
ard earned The Pinnacle Award, the company’s Highest Honor. Richard then
left Duke Energy to launch EQS Capital Management in November of 2012.
Jonathan M. Lamb
Mr. Jonathan M. Lamb is the Director of Business
Development at EQS Trading. As a four year
varsity hurdler on the track team at Ball State
University, Jonathan earned a Bachelor of Sci-
ence degree in Risk Management, Insurance, and
Economics, and later obtained a Masters of Busi-
ness Administration from North Carolina State
University.
As part of the first wave of Millennials to join the
work force, Jonathan started his professional career almost 15 year ago,
joining ACES Power Marketing as an Operations Specialist, providing de-
mand side economics for Co-Op Power Providers before becoming a Real-
Time Electricity Power Trader. He continued his career trading power for
seven years with Progress Energy (now Duke Energy, one of the largest
utilities in the nation) as a Senior Real Time Trader. Jonathan then opted to
become an entrepreneur and started a consulting firm specializing in finance
and economics, owning and running seven different small businesses before
joining EQS in 2015.
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