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Global Commodities: The New Investment Paradigm
Singapore , September 3, 2008 – Investors can profit from today’s boom in agriculture through astute appraisal of the new paradigm in commodity markets. This was the message delivered in Singapore this week to a gathering of investment bankers, fund managers, and commodity traders by Richard Gilmore, President and CEO of the GIC Group. Dr. Gilmore chaired the “Soft and Agricultural Commodities Investment” Conference on September 3-4. Gilmore also made a presentation that set out the dynamics of the new fundamentals for commodity investment in a world of acute price volatility and rising demand. With corn, wheat, rice, and soybean prices more than doubling in 2007 and 2008, but suddenly falling 30 percent since July, he explained that there are a host of new variables and challenges for investors.
Gilmore emphasized that agricultural economies in the BRIC’S ( Brazil, Russia, India, and China) countries and emerging markets are changing, thus impacting traditional supply and demand relationships. “Investors need to keep these new developments in mind when they construct their alpha strategies,” he pointed out.
“Market players can also look to commodity beta strategies involving currency, energy, and weather hedging vehicles,” according to Gilmore. “In the new paradigm, multiple variables have changed the fundamentals of markets, and synthetic, thorough strategies become critical.” He elaborated by presenting examples of various international private equity deals.
The “Soft and Agricultural Commodities Investment” conference follows on the first event of its kind that took place in Chicago this year. Gilmore will also go on to Hong Kong on September 5 to give a Roundtable briefing for institutional investors.
About GIC Group : GIC Group is an agribusiness investment advisory and market research consulting firm established in 1980, and located in Alexandria, Virginia. For information about the conference: http://www.iqpc.com/ShowEvent.aspx?id=101986
Contact: # # #
Susan Scurlock Theiler, GIC Group
1434 Duke Street, Alexandria, VA 22314
703-684-1366 x 110, susantheiler@gicgroup.com
http://www.gicgroup.com
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