Saturday, 30 August 2014
Last updated 1 day ago
Jun 13 2013 | 9:51am ET
The commodities hedge fund industry is maturing, to its detriment, a United Nations agency claims.
The Food & Agriculture Organization has issued a new report, "Commodity hedge funds in retreat?" The paper argues that the growing costs of investing in commodities has "soured" investors, pointing to a 20% decline over the past two years in commodity index funds.
"As with most mature business, commodity hedge funds are finding profitability harder to come by," the FAO wrote. "The sobering truth about the nature of commodity futures may have re-emerged: They are not investments at all but risk-shifting instruments, always generating a loss for every gain."
The FAO said hedge funds finding themselves "saddled with 100% of the losses" may be shying away from commodities. Hedge funds have faced criticism in recent months from those who argue that speculation in agricultural commodities drive up food prices and hurts poor countries.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...