There will be risk

While across-the-board hedge fund performance sunk to all-time lows over the course of last year, the losses for managers in energy and commodity markets were particularly steep; according to Hedge Fund Research and Celent Communications, the rate of return on hedge funds active in these markets fell to nearly -20% during 2008. Only convertible arbitrage and emerging market strategies focused on Asia, and Russia fared worse.

Given the high degree of volatility in energy and commodities relative t