Financial Times – Commodities hedge funds surrendered at least 20 per cent of their assets last year after investors pulled out large sums following the sector’s worst annual performance in more than a decade, according to fund managers and investors.
The average commodity hedge fund lost 3.7 per cent in 2012, according to a closely watched index compiled by Newedge, the biggest decline since the yardstick was created more than a decade ago and substantially worse than the 1.4 per cent loss of 2011.
“It has been challenging for commodities,” said Fabio Cortes, manager of a commodities fund of funds for Oakley Capital. “The sentiment is very negative.”
The investors’ stampede has come after several multi-billion dollar commodities hedge funds, including Blenheim and Clive Capital – the two largest – posted losses for the second year running, denting a hitherto stellar record of performance.