Hedge Fund Report: Joined at the Hips

That is not to say that commodities are a safe haven. As reported Friday by TheStreet.com, Ospraie Management, a $4 billion commodity hedge fund, was down a little more than 10% for the year as of the end of April, due to bearish bets.

Even the bulls have suffered of late from the recent weakness in commodity prices, with gold, silver and copper down sharply this week from their peak levels. An eventual burst of the commodity bubble could make those managed futures funds particularly vulnerable to heavy losses. At this point in the commodity cycle, it may be foolish and not wise, to paraphrase Warren Buffett, to allocate to managed futures.

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