A large US$2.8bn Lehmans run Commodities fund (Ospraie fund) in the US has collapsed with positions being sold to meet redemptions after losses. The whole commodities/resources sector struggling with the fallout and with the suggestion that if one commodities fund is going belly up a host of speculative funds (which have pumped up everything from the oil price to metal prices to equities) could follow suit and sell LME, COMEX and equity positions. Even if other funds aren’t in danger other hedge funds are going to reduce exposures to the sector to avoid the selling and de-risk their commodity/resources exposures
GBG Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
