The latest data from Hedge Fund Research shows a huge money inflow continuing in commodities. It says that the money inflow in commodities and the percentage increase/return has been higher than the average hedge funds.
The January to March 2021 period has seen inflows of USD 492 million. This is much higher and much better than the kind of outflows seen from January to March between 2016 and 2019. Also, indications suggest that April and May 2021 have also seen net inflows continue.
Also, a Goldman Sachs report indicates that commodities are no longer China-centric and China no longer benefits from the low-cost labour and environmental indifference.
According to eVestment, commodity hedge funds performance for the month of April has been up by nearly 6.5 percent while average hedge funds are up 2.5 percent.
So, whether it is volumes, participation, investment, or performance, commodities are doing well on all numbers right now.
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(Edited by : Abhishek Jha)