Using commodities to hedge potential losses in stock markets has not worked lately, and the tighter link among assets these days means diversification benefits may not be as great as before.

Hedge funds, pension funds, mutual funds and wealthy individuals who invested in commodities on the theory that they move independently of other asset classes watched helplessly as the global economic nosedive turned commodities, once the top asset class, into the year’s worst performer after equities.

Those who have studied commodities and longtime investors in energy, metals and grains say that in ordinary times, these markets make good alternatives to stocks.

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New York – Hong Kong based hedge fund manager, PCM Capital, has successfully launched it second Fund of Funds (FoF) – PCM Green Power Fund on 1st, April 2008.  The fund (Class A) returned 1.34% and 1.10% in the first two months respectively.

The new “Green” fund – with its emphasis on Asia – trades or invests in a number of environmental and alternative energy related sectors including clean energy, water management, waste management, power trading, CO2 derivatives and environmental technologies.

Norman Chan, CIO of PCM Capital, said, “We are launching this product in response to the compelling investment opportunities emerging in the environmental sectors, particularly in Asia.  In addition, there is increasing demand from institutional investors for exposure to environmental related investment.”

Norman further added, “The demand reflects growing environmental awareness, attractive upside potential and solid diversification benefits.”

Established in 2006, PCM Capital has two funds under management – PCM Asia Pioneer Fund and PCM Green Power Fund.

For more information, please visit www.pcm-cap.com

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