While both have plummeted by double digits over the past three years, commentators still point to Investec Enhanced Natural Resources and JPM Natural Resources as two funds that could surprise on the upside this year, even if they do only make up a small part of your alternatives bucket.
Volatility has long been a defining feature of energy and precious metals markets, but they can still hold sway as a diversifier from equities and bonds.
Interestingly, these two funds take very different approaches – with the ability to short, Investec’s fund has offered far greater downside protection. However, if you truly believe that we are in for a recovery in commodities, then JPM’s fund may well deliver greater upside potential.
Even if you do not currently invest in natural resources, it is worth a run through of the management, current positioning and pros and cons of each strategy.
