It seems that for the time being, the best avenue for exposure to resources is the direct portfolio approach (until a low cost 'managed' alternative becomes available).
There simply isnt enough value adding alpha out there (in excess of what you can achieve yourself by owning BHP, RIO Tinto, CVRD, Woodside, Santos, Exxon, Shell etc directly) to justify the level of fees skimmed by this mob.
Incidentally, the Australian Financial Review has been running a feature on 'Global Monay Masters' this week, well worth a read.
As a sneak preview, here is a quote from Jeremy Grantham, one of the fund managers featured in the Friday edition of the AFR :
"Grantham, noting that the best risk-adjusted return actually came from the S&P, jokingly wondered why the pension funds wouldn't give their money to the gentlemen from Standard & Poor's"
"Grantham says, because he saw that the stockmarket was clearly, unarguably a zero-sum game and, for big pension funds, there were advantages in matching the index return without the extra costs"
"Hedge funds? They are merely piling an extra layer of much higher costs to a zero-sum game. So whenever you pile on a new cost, you've got to find another sucker to lose even more money than he lost before"
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