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Strategies & Market Trends : Commodities - The Coming Bull Market -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (373)	6/28/2001 5:26:36 AM
From: craig crawford	Read Replies (1) \| Respond to of 1643

JULY 31, 2000 One of the Fund World's Oddest Birds businessweek.com Keeping tabs on commodities via the Goldman Sachs index has helped Oppenheimer's Real Asset feather its nest By James A. Anderson, Business Week Online NEW YORK, Jul. 31 (Business Week Online) - It's a mutual fund, but one unlike any other on the market. It's a play on energy, and to a lesser extent precious metals, cattle, coffee, and orange juice, but not quite like any sector fund you've ever seen before. It invests not in stocks, but commodities. And to cap it all off, its results since the beginning of this year have been nothing short of stunning. In short, the Oppenheimer Real Asset fund (QRBX) is as odd a bird as you're likely to find gliding about the mutual-fund world. Start with its portfolio. Co-Managers John Kowalik and Kevin Baum are charged to essentially keep tabs on an index -- Goldman Sachs' Commodity Index (GSCI) -- that shadows markets for oil, natural gas, aluminum, pork, corn, and a number of other items traded on the Securities & Commodities Exchange. ............................................................................................................................... Put into practice, the Goldman index has put up very impressive returns at a time when the Standard & Poor's 500-stock index was floundering. Take the early '70s, when stocks went on a prolonged slide, falling 14.7% in 1973 and 26.5% in 1974. Those two years, the GSCI humbled Corporate America with gains of 74.9% and 39.5%. In October, 1987, when the market crashed to the tune of a 21.5% drop, commodities rose 1.1%. And in 1990, when the S&P could do no better than a 3.1% fall, the GSCI rose 29.1%. Not only that but the GSCI has an impressive record longer term. Between December 31, 1969, and June 30 of this year, it has sported an annualized total return of 14.2%, edging out the 13.4% for the S&P over the same period.