Hedge funds cautious on commodities

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Few asset classes have stoked as much investor interest in 2009 as commodities. Prices have been buoyant for much of the year as traders bet that an economic recovery and stock market gains will lead to stronger demand for raw materials. Expectations of higher inflation in the coming months have also bolstered the case for commodities, while the rapid recovery in emerging markets has even fuelled talk of another commodities supercycle.

Everyone from bank prop trading desks to institutional and pr

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