Copper and zinc are the two standouts among a brightening outlook for base metals, with supply constraints and China-driven demand set to lift prices in coming months, U.S. commodity hedge fund Blenheim Capital Management said.
After a near six-year downturn that bottomed early last year, industrial metals are being driven more by supply and demand fundamentals than global monetary trends, base metals analyst Ingrid Sternby told Reuters in a rare interview.
The famously private Blenheim sees interest in commodities finally picking up and Sternby said there’s now “a good story to tell.” “We have April ahead of us where usually demand is better. I’d say there is fair chance that we are going to see some better price action ahead. Fundamental stories are promising and I would expect more money coming into the sector,” she said.
New-Jersey based Blenheim is one of the few commodity hedge funds to weather the global financial crisis washout that saw high profile rival funds run by Clive Capital and BlueGold close their doors.
Still, the fund, run for nearly three decades by Willem Kooyker, one of the earliest commodity hedge fund stars, did not sail through the downcycle unscathed.
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