Stephanie Yang, Wall Street Journal, reports on the changing nature of commodity funds, here…
“In 2017, closures of commodities hedge funds outnumbered launches for the first time in data going back to 2000, according to data provider Eurekahedge—a trend that has continued into this year.”
”The long string of fund closures also reflects an evolving market, they say, one that is increasingly driven more by algorithms than fundamental information.”
““Twenty years ago, if you were to talk to a commodity manager and ask him why should we invest with you, the typical answer would be, ‘Well I have all these networks of people and call them for any information I need.’ Today, pointing to proprietary information to be your edge is really dubious,” Mr. Younes said.””
However, assets under managent remain high:
”The number of commodity funds reporting returns has fallen to an all-time low of 130 this year, compared with a peak of 371 funds in 2011, according to data going back to 2007 from research firm eVestment. That comes as assets under management have rebounded to about $83 billion this year from a low of $66 billion in 2015.”
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