Only carbon emissions are not recipe in his eyes

The funds of arbitration are not close to leave the world of raw materials based on the words of Thomas Della Casa, in charge of the investment strategy of RMF Investment Management, a company owned 100 by MAN Group and strong alternative management more $ 23 billion of assets under management. On this amount, 2 billion are placed in the Fund diversified natural resources MWA Commodity Strategies, created in the month of October 2003.

The expert notes that the demand for the products of this class of assets continues to grow without showing signs of slowing down. "Long-term perspectives are very promising in technical terms," notes, more prudent in the short term and a slight sous-pondération to minimize the effects of ongoing consolidation attempts.

"Alternative investments".

RMF Investment Management works primarily to institutional investors, including insurance, Swiss Life or Winterthur. "Our customers are very keen of alternative investments," said Thomas Della Casa.

On average, they spend already on this range of financial vehicles approximately 2 to 3 of their portfolio. Traditionally customary for a passive investment policy in commodity indices, they are turning more towards active management provided by the Fund of arbitration. "Due to the negative working capital yields of contracts recognized lately, especially for energy", explains the expert. The Amaranth case has not just started appetite of institutional investors for products highly diversified and managed with great flexibility, does. "The alternative management industry is now much more mature than a few years ago." If the arbitration are relatively recent actors in natural resource markets, they learn quickly.

A few isolated failures

The collapse of Amaranth has not caused a chain reaction and the crisis could be resolved so ordered by the resumption by other managers of a large part of the interests of the sinking fund. Despite a few isolated failures, the balance sheet of the arrival of the "hedge funds" in the universe of raw materials is largely positive. "They have brought them the liquidity that didn't them often", said the Manager.

The relatively widespread idea that the "hedge funds" do pass through natural resource markets does not correspond to a reality that is very varied, with several alternative management companies engaged for a long time on these products.

For Thomas Della Casa, commodity market conditions are very favourable to arbitration. Volatility, genuine food of alternative management, growing, expanding the spectrum of investments and combinations.

All segments of the natural resources found through his eyes, but the reasons are often different. "Energy is interesting for the prospects of long-term growth in demand." Metals were incandescent placement these past two years. During the coming months, their courses will be very volatile. Precious metals, including gold, retain a strong negative correlation with the dollar. What, in the context of the dollar weakening, constitutes a good investment opportunity. "Finally, agricultural products offer a good potential to increase because of the backlog of the other amenities and the small size of their markets," summarizes the strategist. Only carbon emissions are not recipe in his eyes. "Markets are not sufficiently efficient, too determined by the action of lobbying of their key players and the action of Governments", he concludes.