close
HighlightInternational InvestingLatest News

Reda Bedjaoui outlines key trading styles characteristics in commodity sub-sectors

Hedge Fund Research Institute

An increase in stock market uncertainty post-Brexit and an uptick in interest in commodity hedge funds after a multi-year bear market prompts Reda Bedjaoui, CEO of Redbed Investments LLE and recognized thought leader on multi-sector international investing, to review key characteristics of trading styles in commodity sub-sectors for institutional investors seeking more active opportunities rather than passive strategies.

Hedge Fund Research Institute, HFRI, estimates commodity hedge funds represent less than 1% of total hedge fund industry assets as of 2015.

However, after seeing years of net outflows, 2015 saw modest inflows with several new funds already launched in 2016. In addition, Barclays Annual Investor Survey is projecting a 5% rise in capital into commodity hedge funds this year.

Reda Bedjaoui sees understanding the underlying strategy and style in instruments traded and in sub-sector focus as a way to play relative value relationships and recommends investors look at funds capitalizing on mispricings due to a supply and demand imbalance in the markets traded.

Risk Warning:

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Paul

The author Paul