Hedge Funds Burned by Commodities Lose $40 Billion Since '08
- 2015 was "difficult year" for commodity hedge funds: Trafigura
- Trafigura shut down its flagship Galena Metals Fund this year
Why Forecasting Commodity Prices May Be Pointless
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The biggest commodities meltdown in a generation has cost hedge funds more than $40 billion in seven years.
Losses due to poor performance and investor withdrawals have left assets at the top 10 commodities hedge funds at less than $10 billion, compared with more than $50 billion in 2008, according to estimates from Trafigura Pte Ltd.’s annual report. The trader and asset manager said the perception of commodities as an investable asset has been replaced by a “generalized aversion."