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    Bullish on commodities – Risk.net

    March 31, 20042 Mins Read
















































    Bullish on commodities – Risk.net



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    Risk.net

    Hedge fund exposures to commodities are rising due to strong expected returns. But some fear the ‘commodities bubble’ may soon burst.


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    Investors are increasingly seeking exposure to the commodities markets following two years of strong performance in the sector. The Rogers International Commodities Index (RICI) has risen by almost 100% since the start of 2002, while the S&P 500 has risen by just 1% and the Lehman Bond Index just 28% over the same period (see figure 1). Some of the wealthiest investors are turning to a small but

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