The active argument for commodities
While pensions and others have piled into commodity indices, Mark Preston from Cole Partners argues they may be taking on unnecessary risk for no more returns than active CTAs
The natural resources sector has enjoyed a large amount of attention over the past few years as academics and investors have awakened to the return and diversification benefits it can provide to a portfolio. Yet there are a number of questions to be addressed when considering an allocation to this space.
This article aims to summarise some research our firm has conducted over the past two years (For a complete review, see Akey [2005 and 2006]). An attempt is made to address some of these
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