The Commodity Complex is Getting Decimated by Bryce Coward, Gavekal Capital
As we look at our screen today we see basically all commodities down between 1-2%, but this is just the continuation of a much longer-term trend. Indeed, economically sensitive commodities like copper, crude, natural gas and aluminum (charts below) are all plumbing/trying to plumb new cycle lows and we’re six years into the expansion! In the table below we also show the performance of various commodities over the last year. The only commodity in our table that is positive on the year (through June) is wheat, and it is only up 9%. The S&P Commodity Index is down a cool 33% with the most economically sensitive commodities down the most.
The Delbrook Resources Opportunities Master Fund was up 9.2% for May, bringing its year-to-date return to 33%. Q1 2021 hedge fund letters, conferences and more Dellbrook is an equity long/ short fund that focuses exclusively on the metals and mining sector. It invests mainly in public companies focused on precious, base, energy and industrial metals Read More