Wall Street Hedge Fund Manager Buys 241,000 Tons of Cocoa Beans – Anthony Ward of Armajaro Holdings
Posted on | July 19, 2010 | Comments Off
The has been much talk about the mystery Wall Street Hedge Fund manager who purchased 241,000 tons on cocoa beans on Friday which sent the price of this commodity soaring to two and a half year highs. The individual who made the puchase is Anthony Ward who is the co-founder of the British hedge fund Armajaro Holdings.
The hedge fund took over the 241,000 tons of cocoa beans on Friday and as the New York Times points out the fund now has enough chocolate to make 5.3 billion quarter pound chocolate bars. According the the Financial Times this is about 7% of the annual growth of cocoa beans.
With this huge purchase being made it comes as no surprise to see a huge supply/demand inbalance. There are fears that the supply will be far short of the demand into September with the British hedge fund now holding such a large amount of cocoa beans.
This is a perfect example of the Econ 101 Supply and Demand chapter. Cocoa prices have already moved up over 150% over the last two and a half years and with a much lower supply than demand there will be higher prices until we reach an equlibrium point of price and supply.
Author: Jesse Wojdylo
Ask Wojdylo Column – Financial, Entertainment and Sports news with a money spin.
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