Wed, Nov 11, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Man: Commodity hedge funds offer a superior approach to commodity investing

Thursday, November 05, 2009

By Christine Gaylican, Opalesque Asia:

The commodity hedge funds industry has proven itself resilient in the last 12 months-the height of the global financial downturn-with returns not going beyond double digit levels for top performers comprised of energy, precious and base metals, and agriculture (except for livestock).

Investor interest in commodities has soared in recent years as the asset class has outperformed traditional assets such as stocks and bonds. The performance of commodities as an asset class is usually measured by a commodity index. The S&P GSCI has the longest history-the greatest amount of assets tied to it and is generally the most widely observed index.

According to the latest study done by Europe's largest hedge fund group Man Investments released on Oct.27-09 ("Facts and Myths about Commodity Investing"), this trend will continue strongly even beyond the world financial crisis, widely beating margins promised by equity markets. However, investors were also advised by Man's analysts to watch out for the pitfalls of commodity investing.

Commodity hedge funds vis-a-vis equity funds: No or little correlation

To illustrate that there is no correlation between the performance of commodity hedge funds and the global stock markets, Man Investments studied the historical pattern undertaken by these two investment strategies based on a 20-year data.

Occasionally, it said, the correlation between the two funds was......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m