Wednesday, 24 December 2014
Last updated 9 hours 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.