Hedge funds are interested in raw material
Nobody could assume that hedge funds will sometime pay the attention to power supply systems or water cargo transportations. However, it is necessary to recognize, that recently hedge funds have started to be interested practically in all - from oil refining factories and reception terminals of natural gas up to oil tankers.
Large power and raw funds already create so-called “funds of special opportunities” with the purpose to take positions in the material resources market. UtiliPoint Advisers mark, that large banks, the private joint-stock companies and even hedge funds struggle for access to various kinds of raw material.
It is necessary to note, that some funds have already succeed in it. For example, American investment fund Ospraie Management has bought in the USA the water freight traffic company, hoping on reception of profits (especially on a background of recent raw boom, which has led to growth of demand for transportation of raw material). And hedge share groups Adit Capital and Solius Energy Fund are among the funds, which are supervising more than 25 % of world uranium stocks, are hoping to earn on growth of interest to atomic engineering.
The majority of analysts agree with such actions, marking, that the market of material resources can bring much more money, rather than, for example, the futures market. However, the basic problem consists that while the market of material resources is accessible far not to all.
The basic barrier to many investment funds is hidden in financial opportunities. It is accessible only to large hedge funds. At least 300-400 million dollars is required to invest the capital in the market of material resources.
Experts also warn that such investment will be not the easy. Hedge funds can exist absolutely successfully in the virtual market of financial tools, but the material world strongly differs from virtual.
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