Small private banks wanting to offer their clients investments in soft commodities are increasingly using hedge funds as a point of entry. Interest in commodities has risen as high-net-worth investors seek diversification, but small private banks lack choice when offering third-party products.
Although oil and metals investments tend to be on the menu at most fund managers, such commodities as coffee, orange juice and sugar are often left to the small community of commodity traders being deemed to be too complex. As a result, private banks are looking increasingly to hedge funds.
Charles du Marais, director...
