Hedge funds are raising their exposure to commodities as prices rally and investors respond to macro shifts including the prospect of accelerating inflation under US President Donald Trump, according to Citigroup. “After two years of scaling back exposure to commodities, the fund community finally appears to be growing interested in the sector again,” the bank’s analysts including Aakash Doshi and David Wilson wrote in an emailed note sent February 27. They attributed record net-long positions, or bets that prices will rise, in markets including Comex copper and Nymex crude oil, at least partly to increased allocation of fund money.
