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Actively managed commodity fund replacement sought for Highbridge commodity fund
there is Pimco Commodity Real Return and JPMorgan Commodities Strategy that i know about. the latter is fairly new. also, either one doesn't look good in Morning* since they use commodity futures and/or swaps and place cash or TIPs (in Pimco's case) as collateral, the M* shows them filled with cash. you would need to go to each fund's website to check real asset allocation. both shops are active and over- and under- weight sectors compared to to the relative index. Highbridge got killed mostly being long gold and agriculture -- two bets that backfired. JPM is less drastic in its implementation. Pimco adds (or subtracts as recently) value by placing collateral in TIPs, so you might get extra duration there. study each well before investing. best, fa
The AQR fund is probably the closest comparison in terms of active management. There really isn't much else. The Pimco fund, which is more of an index-like fund. I would stay away from the ETFs, as many of them are structured as partnerships, such as the Nuveen commodity and nuveen l/s funds, which both generate K-1 forms at tax time.
There's another Pimco fund, CommoditiesPLUS, PCLIX, which according to M* does some active management, overweighting and underweighting by small %s within a mostly index-y approach:
"This fund also takes a more active approach to its commodity exposure than most peers, which are less likely to stray from index weightings. Lead manager Nicholas Johnson and his team use index weightings as a default, but then use quantitative and fundamental research to identify opportunities to make moderate bets against it."
They do the usual Pimco "PLUS" thing: the commodity investments are mainly in derivatives, with the collateral going into a small kicker (plus or minus) in bonds -- apparently not as TIPSy as the Commod. Real Return fund.
From the M* writeup, there are different commodity indexes that weight substantially differently; this one is heavier in energy than others -- so it's apparently worth studying what funds use what indexes as their allocation or neutral position.
Comments
Regards,
Ted
http://money.usnews.com/funds/mutual-funds/rankings/commodities-broad-basket
"This fund also takes a more active approach to its commodity exposure than most peers, which are less likely to stray from index weightings. Lead manager Nicholas Johnson and his team use index weightings as a default, but then use quantitative and fundamental research to identify opportunities to make moderate bets against it."
They do the usual Pimco "PLUS" thing: the commodity investments are mainly in derivatives, with the collateral going into a small kicker (plus or minus) in bonds -- apparently not as TIPSy as the Commod. Real Return fund.
From the M* writeup, there are different commodity indexes that weight substantially differently; this one is heavier in energy than others -- so it's apparently worth studying what funds use what indexes as their allocation or neutral position.