Results 1 to 7 of 7

Thread: WSJ: A Wave of Buying Hits Commodity Funds

Threaded View

  1. #1
    Join Date
    Apr 2007
    Location
    Boston
    Posts
    4,223

    Default WSJ: A Wave of Buying Hits Commodity Funds

    JANUARY 12, 2009

    A Wave of Buying Hits Commodity Funds

    By CAROLYN CUI

    In recent weeks, commodity funds have seen an influx of several billion dollars, a stark reversal from the brutal forced selling that dominated the second half of last year.

    Most of the money has flowed into long-only vehicles -- funds that bet on prices to rise -- suggesting a combination of investors' revived confidence and portfolio rebalancing. This wave of fresh buying is partly behind the rally in some commodities that petered out a few days ago, and could bring more liquidity into the market. (Please see related article on C8.)

    "One thing that has changed significantly in recent weeks is the attitude of investors to commodity exposure," Barclays Capital said in a research note on Thursday.

    In December, investors poured $3.9 billion into commodity exchange-traded securities, or ETFs and ETNs, which held a total of $36.2 billion in assets as of the end of 2008, according to fund data tracker National Stock Exchange.

    Among commodities, oil and gold funds are among those seeing the most interest. Last month, the United States Oil Fund, the largest oil ETF, gained $2.06 billion in net assets, and $603 million went into SPDR Gold Shares, the largest gold ETF backed with the physical metal, over the same period, according to National Stock Exchange. A silver ETF, iShares Silver Trust, had a net inflow of $37 million.

    PIMCO Commodity Real Return Strategy fund, the largest commodity index fund with $6.2 billion in assets, says it has seen a consistent cash inflow every business day through Thursday since Dec. 15. The fund had been losing assets since last summer. Meanwhile, some hedge funds that survived last summer's carnage are looking to open new funds.

    cont.
    Last edited by Slimprofits; 01-12-09 at 11:55 AM.

Similar Threads

  1. Next Wave of Mortgage Defaults
    By FRED in forum Video
    Replies: 18
    Last Post: 04-03-09, 04:52 PM
  2. Next Credit tidal wave
    By Mega in forum News
    Replies: 8
    Last Post: 02-24-08, 02:26 AM
  3. Here comes wave 1.5 of subprime...
    By c1ue in forum News
    Replies: 2
    Last Post: 02-15-08, 09:49 PM
  4. The Wave
    By Sapiens in forum Video
    Replies: 1
    Last Post: 10-14-07, 11:54 PM
  5. Replies: 0
    Last Post: 10-04-06, 12:11 PM

Bookmarks

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Opinions expressed herein are those of the posters, not those of iTulip, Inc., its owners, or management. All material posted on this board becomes the intellectual property of the poster and iTulip, Inc., and may not be reposted in full on another website without the express written permission of iTulip, Inc. By exception, the original registered iTulip member who authored a post may repost his or her own material on other sites. Permission is hereby granted to repost brief excerpts of material from this forum on other websites provided that attribution and a link to the source is included with the reposted material.

Nothing on this website is intended or should be construed as investment advice. It is intended to be used for informational and entertainment purposes only. We reserve the right to make changes, including change in price, content, description, terms, etc. at any time without notice. By using this board you agree that you understand the risks of trading, and are solely responsible for your own investment and trading decisions. Read full legal disclaimer.

Journalists are not permitted to contact iTulip members through this forum's email and personal messaging services without written permission from iTulip, Inc. Requests for permission may be made via Contact Us.

Objectionable posts may be reported to the board administrators via Contact Us.

-->