Bullish on commodities

Hedge funds


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