Hedge funds: Funds turn to commodities

Numbers of specialists up 63%, to over 300 since Sept ‘05.

Ben Jackson, Kiodex

“We are seeing more and more multi-strategy fund managers adding commodities to their portfolios”  Ben Jackson, Kiodex

According to SunGard Kiodex, a web-based commodities risk management platform for financial institutions, commodity hedge funds are rising in number. The most recent evidence comes from Citigroup, which is reportedly seeking to raise up to $2 billion for two new hedge funds that will be managed by the US bank’s energy trading subsidiary, Philbro. Leslie Barbagallo is a senior vice-president at Kiodex, where her responsibilities include assisting hedge funds and their investors with risk management due diligence.

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