New Commodities Index Plays Aim To Avoid Crowding

Some passive investors in commodity indexes are looking to new strategies to produce returns that are driven more by market fundamentals than by investor flows, making them less vulnerable to crowding.

Index funds are popular with pension schemes that do not have the governance structure to invest actively in commodities, but some of the most popular and simple strategies have become the victims of their own success.

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This article was originally posted on December 06, 2010