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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat