Not the commodity they hoped to be trading.
It’s only been a bad seven years for commodities hedge funds if you consider hemorrhaging 80% of your assets and losing money almost every year bad. OK, yea, it’s been bad. But, on the bright side: opportunity!
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….
“We have seen a sea-change in investor attitudes,” Trafigura said in the annual report. “Such was the negative sentiment towards the sector, that a number of our investors drew down their accounts and exited the commodities segment, with the result that our assets under management fell year-on-year.”