Financial Times FT.com

Hedge funds cut commodities exposure

By Javier Blas and Krishna Guha in London

Published: March 23 2008 17:12 | Last updated: March 23 2008 17:12

Commodities prices have been falling across the board as hedge funds cut their exposure to one of the most popular asset classes so far this year, suggesting that recent record prices have been buoyed by speculative flows.

The spread of deleveraging to commodity hedge funds could be good news for central bankers – usually afraid of any financial contagion.

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