While the average commodity fund is down 4.3 percent Newedge data shows, one of the biggest and best-known funds - Clive Capital - decided to call it a day in September and closed.
Lawler at GAM said the dominance of machine traders in markets had made it particularly tough for other commodity managers, and he remained underweight in the sector.
New Money Keeps Coming In
Despite the relatively poor performance, investors continue to put more money into hedge funds.
Total net inflows by the end of November topped $71 billion, almost double last year, eVestment said in a report this week. Combined with performance gains, this has raised industry assets to $2.8 trillion, 3 percent below its all-time high.
Institutional investors are fuelling the inflows, believing that when markets skid hedge funds will offer them the best protection from losses on their stock and bond holdings.
"Hedge funds need a year when you get more differentiation across markets. Maybe next year will bring that, but if funds still can't perform better, then what can managers say ?," Botero said.