Feeder-cattle futures provided the safest returns of all commodities including gold in the second half of 2011, when adjusted for volatility, as high feed costs and drought led to smaller herds and record prices.
The Standard & Poor’s GSCI Feeder Cattle Total Return Index rose 2.45 percent in the six months ended Dec. 31 with volatility of 13.6, for a risk-adjusted return of 0.18 percent, the highest per unit of price swings among 24 commodities tracked by S&P, data compiled by Bloomberg show. While gold gained more, touching a record $1,923.70 an ounce on Sept. 6, the higher volatility of the metal’s total-return index left its adjusted gain at 0.147 percent…..
