What is the one area of investing where you think anyone could have made money in the last year? If you're like us you probably thought commodities. However, earlier today, Bloomberg News reported that in the month of July, commodity hedge funds posted a record monthly loss of 11.8%. Over the same time frame, the CRB index was up 98 bps after rebounding late in the month from a mid-month swoon. One commentator attributed the woeful underperformance to the fact that volatility in commodity prices made it “harder to capture long-term trends”. We’ll leave it up to you to figure out what that statement means, but aren’t hedge fund managers supposed to be active managers, rather than buy and hold? After looking at the chart of the CRB index, something tells us August wasn't much better.