Anthony Ward, aka choc-finger, has dumped a ton of cocoa amid falling world prices.
Ward made headlines earlier this year when it emerged that the hedge-fund side of his commodities trading firm, Armajaro took delivery of 240,100 tons of cocoa.
It was the second-highest amount on record and gave the trader control of about 7% of the world’s cocoa.
But it’s turned out to be a sorry investment.
From the Wall Street Journal,
London cocoa deliveries against the December contract, which expired Tuesday, hit their highest level for the final contract of the year in a decade.
Armajaro’s purchases in July totaled an estimated $1 billion, amounting to enough cocoa to make 15 million Hershey’s milk chocolate bars. Investors feared the fund would use its holdings to try to dominate the market, pushing prices higher. London cocoa prices for the July contract soared to 33-year highs of £2,709 ($4,275) a metric ton.
And despite a recent spike in prices… dealers say the attraction of holding cocoa stocks has waned.
In 2002, Ward reportedly made $17 million on a shrewd cocoa purchase. No such luck this time, but maybe third time lucky.
Business Insider Emails & Alerts
Site highlights each day to your inbox.