Investors Rush To Commodities Hedge Funds

Investors Rush To Commodities hedge funds

The hedge fund industry just can’t seem to catch a break this year. Performance is abysmal and in today’s world of low-cost ETFs and tracker funds, the hedge fund industry’s antiquated 2/20 fee structure is attracting plenty of negative publicity.

The combination of high costs and low returns isn’t doing the sector’s reputation any good and investors are withdrawing their cash from funds in droves.  Indeed, Tony James, president of private-equity giant Blackstone, told Bloomberg this week that he expects one-quarter of all current assets in hedge funds to be yanked out in the next year.

However, there’s one section of the hedge fund world that seems to be doing better than others.

Active Mutual Funds...