Sat, May 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fund of hedge funds can broaden appeal of commodities with talented managers

Wednesday, October 05, 2011

From Precy Dumlao, Opalesque Asia:

The commodities sector has been the best performing major class over the last decade and has seen its biggest boom during this century. Despite the collapse in the price of natural resources during the 2008 financial crisis, the price of gold has risen steadily for nine consecutive years, according to Man Group’s latest paper on commodities titled "The Case of Commodities" that was released last week.

It is not surprising that commodities is one of the most favorite asset classes amongst investors and fund inflows into the sector have jumped, particularly in gold, oil, natural gas, industrial metals and agriculture.

However, Man Group says the asset class could be further enhanced by fund of hedge funds (FoHFs) by selecting the most talented managers in the hedge fund arena and combining complementary strategies to maximize risk-adjusted returns. Such strategy could also provide more comprehensive diversification across the asset class than commodity indices, the study adds. FoHFs managers can utilize niche performance by adding additional segments, like power and emissions rights.

Based on historical observations, it is likely that commodity prices will continue to exhibit much greater volatility and longer price cycles than those associated with traditional asset classes. However, a long/short approach to commodities investment can help to address ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  2. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  3. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  4. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the

  5. AI-based hedge fund brings machine learning investing to masses[more]

    Komfie Manalo, Opalesque Asia: Machine learning-based hedge fund firm Greyfeather Capital is trying to bring artificial intelligence investing to the masses with its plan to expand beyond the limited reach of the alternative investments space. "We're excited to bring AI technology to traditio