Return of the Multi Asset Commodity Fund

After years of redemptions, commodity funds are showing healthy increases, with Q1 inflows close to $4 billion, the most of any type of hedge fund.

So observes DMS Managing Director John D'Agostino, in an article titled, 'Return of the MAC (Multi Asset Commodity Fund)', published in Hedge Fund Intelligence (May 20th edition). Drawing on analysis done by DMS Offshore Investment Services "on its universe of more than 2,000 funds" Mr. D'Agostino notes that commodities as an asset class has been under-allocated to (or over withdrawn) for the past five years. Reasons for redemption ranged from concerns about volatility and strategy complexity (smaller investors) to concern about diminished liquidity in commodity financial derivatives markets (larger investors).