Wed, Sep 20, 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. Institutions - Canada's pension funds lever up[more]

    From Institutionalinvestor.com: Canadian pension plans are among the most admired institutional investors for their prowess as money managers. Now pension plans in Canada are upping the ante, increasingly issuing long-term bonds and using the borrowed money, or leverage, to try a

  2. Manager Profile - The three quants in their 20s running a hedge fund making $1 billion of trades daily[more]

    From Forbes.com: In an office overlooking downtown Boston, the views are partially obscured by math formulas and technical drawings that have been scribbled on the windows. Wearing a T-shirt with the words "machine earning" printed on it, Luca Lin says the formulas are being developed to help trade

  3. News Briefs - Iron Cove Partners launches hedge fund manuscript management & professional liability insurance policy, Private equity, hedge funds eye bizav financing market. Blue Capital halts ILS fund buy-backs as hurricane Irma approaches[more]

    Iron Cove Partners launches hedge fund manuscript management & professional liability insurance policy Iron Cove Partners, a national insurance brokerage specializing in the needs of the alternative asset management community, today announced the launch of its newest insurance product, th

  4. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  5. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De