Hedge Fund Losses From Commodity Slump Sparking Investor Exodus
Investors are demanding their money back as losses mount
Gold is among the commodities that have slumped into a bear market this year
Chris Ratcliffe/BloombergThis article is for subscribers only.
When even Cargill Inc., the world’s largest grain trader, decides to liquidate its own hedge fund, that’s a sign that commodity speculators are in trouble.
Hedge funds focused on raw materials lost money on average in the first half, the Newedge Commodity Trading Index shows. Diminishing investor demand spurred Cargill's Black River Asset Management unit to shut its commodities fund last month. Others enduring redemptions include Armajaro Asset Management LLP, which closed one of its funds, Carlyle Group LP's Vermillion Asset Management and Krom River Trading AG.