How did a famous trader lose in oil when he focused on cocoa?

Pierre Andrand, a famous trader in the oil market, withdrew his optimistic bet on cocoa after a series of unsuccessful transactions in terms of timing that suffered heavy losses, according to a message directed to the investors by “Bloomberg”. The fluctuations emphasize the risks facing the fund managers who are moving away from their basic experience and heading for other markets that pose unknown risks. Andorand, whose main closet fell by more than 57% by the end of June, began spreading cocoa to more than a decade’s focus mainly on oil in early 2024. “The latest performance was very disappointing. Pierre Andrand reduced his long -term investment in cocoa in all Andorland boxes,” the last letter told the investors. Andorland spokesman rejected the comment. The successes in the oil sector began and the failed journey in the field of Cocoo in January 2024, when an analyst in his business offered him a proposal for a new trade. “Pierre, you have to look at the cocoa,” the analyst said according to Andorland’s novel in Bodcast, “former Lotus” in May last year. Andorland replied, “Well, I don’t know anything about it, tell me.” You may also be interested in: Chocolate makers on a hot look at the aggravation of the global cocoa crisis until that time, Andorland was mainly known for energy trading. Initially, he was successful in buying and selling oil in the Vitol Group, before leaving it to establish the “Bluegold Capital Management” to establish the former head of the company’s trading division, Denis Karima. Their new project achieved a return of more than 200% in the first year thanks to the profitable bets on the price of oil. Only a few years, Blue Gold, has made heavy losses, and returned the money to its investors in 2012. In the following year, Andorland the company with its name, which is on oil, has been produced to win profits with numbers in the category dozens in the early years. Andorland has expanded from oil to investment in other commodities, including minerals. His company has also placed profitable bets over the past few years with a sharp increase in European carbon licenses. The Cocoa Strategy has centered on the cocoa trading strategy proposed by the analyst in Andorland over a simple principle, is the incompatibility of supply and demand. Most of this commodity is only cultivated in two countries, Ivory Coast and Ghana. It seems that the supplies will be a decrease in various reasons, such as bad weather and an innate disease called ‘Black Pod’. Andorland explained that any shortage of supply could have a significant impact on future cocoa contracts, because the demand for chocolate usually does not respond much to the fluctuations of the price of this raw commodity. He added in the “ODD Lots” program that chocolate consumption is still rising, whether there is stagnation or not, and whether prices have risen significantly or not. risen since the beginning of the year. Standard & Poor’s 500 index as a hedging of customs rates on commodity prices. returned. According to the message addressed to the investors, he said the achievement of April, he said: “Our main ear feeding is that we will be a rise in cocoa today. The majority of our risk of cocoa is still due to our basic luxury expectations.” The presence of fundamental differences in the cocoa market compared to the biggest oil trade. such as oil, gas and minerals. So it is also part of the image of risk, “Gulberg added, who teaches and speculates in commodities.” If you bet heavily, you may find that your positions are trapped, “he said. Andarand seems to achieve the same result- even if its hypothesis is correct with a fundamental difference in a recent message. But the movement of prices and its fluctuation was very serious.”