The following research paper was selected for presentation in the Due Diligence Forum program at PortfolioConstruction Conference 2008.



Due Diligence Forum speaker

Justin Hyde
Barclays Capital

Due Diligence Forum summary

Commodities have been an outstanding investment for the past five years. Despite prices now trading at multi-year highs and the inflow of money into the sector increasing substantially, the case for investing in commodities – intelligently – is even more important.

This presentation and underlying research paper examine why diversification remains a key reason for including commodity assets in a portfolio, with commodity market returns neutrally correlated (at best) with equity and bond markets. They address the emerging, compelling justification for commodities as a hedge against rising global inflation and highlights why a long-only allocation doesn’t stack up. Lastly, they address the solution – a long-short strategy that provides commodity exposure, allows investors to take advantage of volatility, and provides a positive absolute return for a portfolio.


© 2008 Portfolio Construction Forum, Brillient Investment Publishing Pty Ltd ABN 19 122 531 337. 
All rights reserved. Refer Terms & Conditions of Use .