Bullish on commodities

Hedge funds

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Investors are increasingly seeking exposure to the commodities markets following two years of strong performance in the sector. The Rogers International Commodities Index (RICI) has risen by almost 100% since the start of 2002, while the S&P 500 has risen by just 1% and the Lehman Bond Index just 28% over the same period (see figure 1). Some of the wealthiest investors are turning to a small but growing number of specialist commodities hedge funds and commodities trading advisers (CTAs).

The val