Hedge Funds Cut Commodities Bets

Nov 5 2012 | 1:18pm ET

Hedge funds ended October with their lowest exposure to commodities since the summer.

Futures and options on 18 commodities dropped by 11% in the week ended Oct. 30, the day after Hurricane Sandy made landfall in southern New Jersey, the Commodities Futures Trading Commission reports. Bullish oil bets hit a four-month low, as oil refineries on the U.S. East Coast closed in advance of the storm's arrival.

Bets on copper and gasoline also dropped, the former to an eight-week low and the latter for the fourth week in a row.

Other uncertainty seems to have hurt hedge funds' and other investors' taste for commodities, including renewed uncertainty in Europe and tomorrow's U.S. presidential election, which forecasts indicate will be a close contest.


In Depth

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of