Thursday, 25 December 2014
Last updated 1 day ago
Nov 25 2013 | 11:59am 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.
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.