| Commodities investors are altering their exposure to the asset class following the recent price declines, but aren’t boosting allocations and don’t look likely to for now, a senior executive at Pimco told Metal Bulletin. Nicholas Johnson, an executive vp and portfolio manager focusing on commodities and multi-asset portfolios, said that investors were trying to change their exposure "at the margins." "Some investors are saying they are exposed to too much volatility and would prefer a lower volatility.
"We see some interest from investors to mix their commodity beta – so investment in the S&P Goldman Sachs Commodity Index, and a commodity hedge fund," he said. "The idea of this is that the investor will have some commodity beta but they also have some absolute return, so together they lower volatility and they probably have a little better return expectation. We do see some people who were all beta before now going to a mix of beta and hedge funds," he noted...............................................Full Article: Source
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