(Updates with comments on China in seventh paragraph.)

May 10 (Bloomberg) -- Commodity prices are in a correction and are poised to rebound, said Courtenay Wolfe, chief executive officer of Salida Capital, a Canadian hedge fund.

“We view this as a mid-cycle correction,” Wolfe said late yesterday at the 100 Women In Hedge Funds conference in Toronto sponsored by Bloomberg LP. “We are still bullish on resources as a whole.”

The Standard & Poor’s GSCI Index of 24 raw materials fell 11 percent last week, the most since 2008, as slower growth in U.S. services and fewer German manufacturing orders stoked concern the economic recovery is faltering.

Wolfe’s firm manages about $900 million in assets, focusing on natural resources, with about 50 percent of the investments in Canada.

“We think Canadian oil sands are a very significant area of interest to us,” Wolfe said.

She said China Investment Corp., a sovereign wealth fund supervised by China, opened an office in Toronto because they see the potential to make money investing in resources.

“Their mandate, first and foremost, is to make money,” Wolfe said. “From an investment point of view, they see resources as being one of the biggest areas of growth.”

Canadian Dollar

Wolfe and Camilla Sutton, chief currency strategist at Scotia Capital, said in the panel discussion that they expect the Canadian dollar to strengthen relative to the U.S. currency.

“We have a lot of stuff the world needs,” Wolfe said.

Wolfe joined Salida as managing director in March 2008 and was named president and CEO later that year. Wolfe and other Salida representatives paid $1.68 million at a charity auction in 2009 to have lunch in New York with billionaire investor Warren Buffett.

The loonie, as the Canadian currency is known for the image of the aquatic bird on the C$1 coin, touched 94.46 cents on April 29, the strongest level since November 2007. One Canadian dollar buys $1.0370.

Canadian Prime Minister Stephen Harper’s Conservative Party won a majority of seats in Parliament last week, putting them in control of the legislature for the first time since the early 1990s. Harper has been in power since 2006 without holding a majority, meaning he’s had to rely on support from opposing lawmakers to pass laws.

The Conservative government and a majority government are a “win for the Canadian dollar,” Scotia Capital’s Sutton said.

Related News and Information: Top Canadian news: {TOPC } Top financial news: {FTOP }

--Editor: John Simpson, David Scanlan

To contact the reporter on this story: Sean B. Pasternak in Toronto at [email protected]; Diane Brady at [email protected].

To contact the editors responsible for this story: David Scanlan at [email protected]; David Scheer at [email protected].