Commodity markets have experienced dramatic growth and increased institutional investment in recent years. This course explores cash and futures markets in energy, grains, metals and soft commodities, as well as equity investments in commodity related firms. Students will explore the role of hedgers, speculators and institutional investors in commodity markets. The value of commodities in the institutional portfolio will be presented, which may allow hedging against inflation and the risks of declining stock and bond prices. Commodity trading advisers, commodity pool operators and the managed futures industry will be discussed. These fund managers initiate both long and short positions in futures markets, typically constructing portfolios from either a systematic or discretionary perspective.
[(MSF 504 with min. grade of C and MSF 505 with min. grade of C)]