In these uncertain economic times, where should a billionaire invest his funds? If you’re like one British hedge fund manager, you’ll put your money on chocolate.
Anthony Ward, who runs hedge fund Armajaro Holdings, bought $1 billion in cocoa beans last week. And not just on paper. He actually had $1 billion worth of cocoa beans — 240,000 tons, if you were counting — shipped to Armajaro. According to the BBC, that’s like filling five Titanic-sized ships with cocoa. It was the largest cocoa bean delivery in 14 years.
Financially, Ward put a solid bet on the rising price of cocoa. Production has fallen in Africa and demand has risen in Asia. And his purchase itself shot up the price of cocoa to the highest it’s been in 33 years. In the U.S, financial reform is attempting to curb this type of speculation. But in Europe, there’s nothing illegal about hiking the prices of our Hershey bars with a massive chocolate grab.