Global Advisors, the commodities hedge fund manager, says its core investment program has returned +24% net of fees for investors year to date in 2004.
“We believe the current commodity/energy bull market is comparable to that of the technology sector five years ago,” says Danny Masters, portfolio manager of the programme. “We are seeing massive inflows of capital into commodities due to three main factors: demand, depletion and the dollar. Oil is the best example. Demand for oil is rising at an unprecedented pace led by Far Eastern and US growth. Depletion of mature oil and natural gas fields means we have to find new sources of energy to meet increasing demand. Finally, the weak dollar serves to exacerbate demand for commodities when expressed in foreign currency. This has buoyed precious metals in particular. We believe that opportunities in energy & metals markets will remain abundant in coming months.”
The Global Advisors Discretionary Program uses a diversified strategy that focuses uniquely on energy and metals. It currently manages $166 million of assets for institutional investors, professional investors, funds of hedge funds, and family offices. The Discretionary Program started trading in September 1999 and has returned 109.98% net of fees since inception.
Global Advisors Discretionary Program: Returns to 30th July 2004 are final. Returns for the month of August are unaudited as of 28 September 2004.