Managers See No Commodity Bounce-Back In 2014

Nov 25 2013 | 12:59pm ET

Commodity hedge funds have had a tough run in 2013, and next year may offer no light at the end of the tunnel.

Top hedge fund managers told the Reuters Global Investment Outlook Summit that the outlook for commodities next year is not good. In particular, they are down on gold, in the belief that inflation is a long-term, rather than short-term, bet.

China is the primary concern, managers said. The world's largest copper user, iron-ore buyer and oil importer has seen its industrial sector slow recently, with further weakness expected next year.

CQS' Michael Hintze told the gathering that platinum is the only commodity he's trading right now, and that he's not trading very much of it. He said that labor conditions at platinum and palladium mines in South Africa could lead to shortages.

"The unions are very aggressive in South Africa," Hintze said. "I can see why they're aggressive," he added, in reference to difficult conditions in the country's mines.

Hintze also said that, on at least one level, he's not worried about China, and that he might began buying it again next year due to that country's continued appetite for it.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of