Investors Are Seeking Liquid Strategies Such As Commodity Trading

The days of long lock ups on hedge funds might be changing. There seems to be a growing trend of investors seeking more liquid and more transparent strategies. Can these investors be blamed? Much of the interest in trading-oriented and trend following managers has come from a wide array of investor categories including family offices, pension companies and funds of funds.

During the recent volatile markets, wealth advisors and consultants are finding it difficult to convince clients they should tie up their money for extended periods of time in alternative investment vehicles. Add in the fact that these supposedly non correlated assets also were negatively effected. More so trend following and trading oriented commodity traders made double digit returns while virtually all other asset classes imploded. Depending on the amount of capital available investors can have managed accounts for their commodity trading. In all honesty, this is ideal as they are liquid… and fully transparent…and the commodity trading advisor only can give buy and sell orders.

The commodity trading advisor has no power over the movement of assets… ( NO Madoffs scams). More over, when you allocate to commodity trading advisors they look at a large basket of potential markets. There are always bull markets and bear markets. Direction up or down means nothing. The only thing that is important is that there are trends.

Investors have finally started to wake up that Buy and Hold only works in Bull markets. Investors have woken up that they want liquidity and transparency. The only strategy that offers this is commodity trading.

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