In July 2010, a 50-year-old hedge fund manager quietly bought 240,000 tons of cocoa beans. That was 7% of the entire world’s production. The majority of all available supply on the market. His bet was worth a billion dollars. The press called him “Chocolate Finger.” Chapter 34 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Anthony Ward and his massive cocoa gamble.
In July 2010, a 50-year-old hedge fund manager quietly bought 240,000 tons of cocoa beans. That was 7% of the entire world’s production. The majority of all available supply on the market. His bet was worth a billion dollars. The press called him “Chocolate Finger.” Chapter 34 of Torsten Dennin’s “From Tulips to Bitcoins” tells the story of Anthony Ward and his massive cocoa gamble.
“Amaranth” is Greek for “imperishable.” The flower that never fades. Somebody at the hedge fund picked that name on purpose, imagining a fund that would last forever. Instead, Amaranth Advisors became the biggest hedge fund collapse since Long-Term Capital Management in 1998. Two-thirds of its capital gone in two weeks. Six billion dollars, vanished on natural gas bets. Chapter 22 of Torsten Dennin’s “From Tulips to Bitcoins” tells this story.
“Amaranth” is Greek for “imperishable.” The flower that never fades. Somebody at the hedge fund picked that name on purpose, imagining a fund that would last forever. Instead, Amaranth Advisors became the biggest hedge fund collapse since Long-Term Capital Management in 1998. Two-thirds of its capital gone in two weeks. Six billion dollars, vanished on natural gas bets. Chapter 22 of Torsten Dennin’s “From Tulips to Bitcoins” tells this story.
This is the final post in my series retelling Diary of a Very Bad Year. Here’s the epilogue and my closing thoughts.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter IX, Part 2 - the final interview.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter IX, Part 1. The chapter was too long for one post so I split it in two.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter VIII.
It’s July 2, 2009. The Dow sits at 8,280. Unemployment is at 9.5%. And HFM is doing something he hasn’t done in a decade. He’s going on vacation. A real one.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter VII.
It’s May 2009. The Dow is at 8,504. Unemployment is 9.4 percent. Over 342,000 homes got foreclosed that month. But the worst of the panic? That part seems to be over.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter VI - the start of Part 3: Aftermath.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter V.
It’s January 16, 2009. The Dow is at 8,281. Unemployment is 7.6 percent. Over 300,000 foreclosures this month. And HFM just spent his New Year’s Eve chasing bank traders on ski slopes to get year-end prices for his portfolio. Welcome to year-end closing on Wall Street.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter IV - the start of Part 2: The Collapse.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter III.
It’s September 4, 2008. The Dow is at 11,188. Unemployment just hit 6.2 percent. Over 300,000 foreclosures this month. And HFM is back in his midtown office, looking out the window at the same city. But things are worse now.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter II.
Six months have passed since the first interview. It’s March 26, 2008. The Dow is at 12,422. Unemployment is 5.1%. And Bear Stearns just got bought for pocket change.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Chapter I.
Before the interview starts, the book gives you context on how we got here. And it’s a story about cheap money and bad decisions stacking on top of each other.
This is part of my series retelling Diary of a Very Bad Year. Today we’re covering Keith Gessen’s introduction.
Keith Gessen got introduced to the anonymous hedge fund manager (HFM) in late 2006. Someone called HFM a “financial genius” who ran the emerging markets desk at a midtown hedge fund. Gessen was skeptical. He knew plenty of people from college who went into finance, but mostly for the lifestyle. Working hard, drinking beer, watching football.
I just finished reading one of the most interesting books about the 2008 financial crisis. And I want to walk you through it.