Thursday, 28 July 2016
Last updated 1 hour ago
Oct 8 2012 | 11:48am ET
Hedge funds leapt back into commodities, perhaps sensing that the asset class is bottoming out.
Commodity prices hit a two-month low last month, causing most hedge fund and money managers to shy away, cutting their exposure to commodities for three straight weeks. But that came to an end in the week ended Oct. 2, the Commodity Futures Trading Commission said, as asset managers increased their long bets by 0.2%.
That long exposure to 18 commodity futures and options had dropped by more than 6% over the preceding two weeks.
Gold positions rose by 3% on the week, but not all commodities are so favored by hedgies. Agricultural contracts saw bullish bets fall by 7.1% and oil by 6.5%.