Anthony Ward’s Armajaro Asset Management LLP manages the CC+ Fund. The CC+ fund is an agricultural commodity trading fund. The fund typically concentrates in coffee and cocoa, but also trades a variety of other soft agricultural commodities. The fund’s trading strategy includes both directional and arbitrage long or short futures positions, as well as exchange traded options and OTC options or other derivatives.
CC+ fund performance
The CC+ fund was established in September of 2007 and has produced annualized returns of 13.74% during that period. The fund returned 11.90% in 2012 and 1.92% 2013. The CC+ fund has returned 17.95% from February 2013 through February 2014. The fund is also up 16.85% for the first two months of the year, including a 6.62% return in January and a 9.52% return in February. An investor who spoke to ValueWalk guessed that returns past February have not been disclosed likely because the firm maintains a large degree of secrecy.
Cocoa “sleepy”
According to the February 2014 CC+ Fund report, “cocoa was comparatively sleepy this month with markets taking a pause after a 10 month rally and letting the spotlight switch elsewhere within the softs community.” The report highlighted that ICE cocoa prices settled for the month of February at $2,957/mt (metric ton), an increase of 1.19% for the month. Trading was also very quiet in the London Cocoa markets, with cocoa beans closing out February at £1,844/mt.
Anthony Ward – Coffee prices exploded in February
The month of February was much more exciting for coffee traders. Following a nearly three-year bear market, coffee finally moved forward significantly clawed back all the losses since October 2012 in just one month.
The report gives an overview of the month’s coffee trading action. “After shooting up 10c/lb on the first trading day of February, then consolidating around $1.40 for two weeks, prices went into orbit during the last 10 days putting on 40c/lb as trekkers began to evaluate the potential damage caused to the 2014/15 Brazilian Arabica crop by the far drier than normal conditions that have prevailed since early January. Volume was a spectacular 1.14 million contracts, easily a record, and up 101% on the January total of 567k lots.”
Ward also mentioned that short-covering played a major role in the huge move up in February. Arabica coffee bean prices settled at $1.8125 in February for the ICE May 2014 position, an impressive gain of 42.5%.
