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A preferred benchmark for evaluating the performance of long-only, active commodity managers

November 2009
Investors appear to be increasingly inclined to use active managers for investing in commodities. What's the best benchmark for assessing the performance of active commodities managers?
This short paper provides Russell's answer to this important question. In addition, this paper includes background information discussing:
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- Growth in active commodities investing
- The dilemma of commodities exposure: Practical implementation
- An overview of two commonly used commodity indexes
- Rules for benchmark selection
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