Halloween Comes Early For Hedge Funds

Sep 18 2013 | 10:39am ET

Hedge funds have rediscovered their sweet tooth, amassing record numbers of cocoa contracts.

Net long positions in New York and London topped 165,000 lots—more than the world's largest cocoa producer, the Ivory Coast, puts out in a year, the Financial Times reports. The huge demand for cocoa and cocoa products, coupled with fears about the weather in West Africa, have lifted brown gold out of a two-year slump, sending prices up 17% over the last two-and-a-half months.

"These are unprecedented levels," Marex Spectron agriculture co-head Jonathan Parkman told the FT.

Cocoa butter is a particularly hot commodity right now, a sign of growing demand for luxury chocolates.

"Chocolate makers are really struggling to get their hands on cocoa butter at the moment," Parkman said.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...