Brian Hunter, the gas trader, tried to raise money for another commodity fund, Solengo Capital, until he was sued by the Commodity Futures Trading Commission and named in an administrative action by the Federal Energy Regulatory Commission.
Commodity futures are capital assets and get taxed as if they were 60% long term and 40% short term, regardless of how long you hold the positions.
The reasons are many, with the largest ones being the long lag time to production, environmental concerns and political risks, as well as the fact that increased commodity costs means higher capital costs required to explore and develop mines.
In contrast, its competitor General Electric reallocated capital from commodity plays that had paid in the 1970s to new real enterprises like magnetic resonance machine-manufacturing, betting that discretionary income for health care was going to soar with the coming rise in affluence.
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"In my view, capital is now a commodity and I don't want to be in a commodity industry, " she says.
Mr. Koutoulas is the CEO of Typhon Capital Management and recently founded the Commodity Customer Coalition (CCC), which is comprised of over 7, 000 customers of MF Global.
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Economic policy in these nations has evolved, to the point where they have managed to efficiently navigate a global environment of high commodity prices, low interest rates, and large capital flows.
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On Wall Street, China is the driving force behind the commodity bull market, and a great fundamental story for long term capital appreciation while US and European markets stagnate.
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Wall Street presumes that commodity notes held for more than a year get the same lenient capital gains treatment as stocks and bonds (a top rate of 15% at the moment).
Brazil, Chile and Mexico have all seen their economic prospects brighten during the past year as commodity prices rose, rich-country economic growth strengthened and private capital flows to emerging markets resumed.
While such a portfolio would have required a much higher outlay of capital in the past (especially before the advent of commodity and currency ETFs), she can now build a portfolio incorporating all of her views through the use of ETFs.
Jon Huntsman had purchased 34 mainly commodity chemical businesses over the years, with almost none of his own capital.
The combination of a massive commodity windfall and extremely loose monetary policy in advanced economies have channeled huge capital flows to these economies.
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He has focused on building the Tokyo-based firm into a one-stop shop for leases, loans, commodity funds, insurance and other services not unlike a GE Capital or Citigroup on a small scale.
He has focused on building the Tokyo-based firm into a one-stop shop for leases, loans, commodity funds, insurance and other services -- not unlike a GE Capital or Citigroup on a small scale.
Ecuador is only the latest pop, following Thailand's botched capital controls, Venezuela's proposed nationalisations and sharp falls in commodity prices.
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"The accuracy of tweets is a major concern, " said Zeid Barakat, co-founder of Flyberry Capital, a startup that uses high-speed strategies to trade commodity futures around news events.
Before the smaller players drill, they must factor in such issues as their capital and lease costs, as well as the price of the underlying commodity.
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"In the mining sector, the recent sharp decline in commodity prices has caused profits to deteriorate significantly, such that miners are now spending more in capital expenditure than they are earning, " Credit Suisse analysts Damien Boey and Atul Lele said in a note.
The report draws on the experience and insights of an advisory committee that included the Citi Foundation, the Skoll Foundation, Root Capital, Technoserve, and ANDE, as well as interviews with over 65 commodity buyers, investors and value chain experts.
"When you talk about the sectors that are leading on the way down, they're all commodity-backed in some fashion, " said Will Bertsch, a head of trading for BMO Capital Markets.
Its purchases of foreign assets keep the cost of capital down and its appetite for raw materials keeps their price up, to the benefit of commodity producers wherever they sell their wares.
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