Hedge Funds Back Off Commodities Bets

Jun 10 2013 | 11:42am ET

Hedge funds are shying away from commodities en masse.

Net-long bets on 24 commodity markets fell the most in two months in the week ended June 4, the Commodity Futures Trading Commission said. Speculators cut their bullish bets by a net $680 million, leaving their net-long position at about $67 billion.

Crude oil futures were hardest hit, with $504 million leaving the trade during the week.

Gold was immune to that downturn during the week, with net-long positions rising 19% through June 4, a 60% jump over the previous two weeks. But investors fled the precious metal later in the week, after a stronger-than-expected U.S. jobs report.

The number of hedge funds invested in gold bullion dropped by 31% to their lowest level since 2010, Eurekahedge said.

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