The rise of computer-driven funds and high-frequency trading is forcing some commodity hedge funders to close, looking instead to areas not affected by machines. Anthony Ward, known for bold bets on cocoa markets, argued that the rise of computerised trading has reached breaking point, distorting prices and creating uncertainty for investors and those that rely on commodities. It was in January 2016, after a slide in cocoa prices, that Ward decided the days of traditional commodity investors doing well from taking positions based on fundamentals such as supply and demand may be numbered. “People are getting very nervous about what will happen in a few years when computers can do all this stuff,” he said.
The rise of computer-driven funds and high-frequency trading is forcing some commodity hedge funders to close, looking instead to areas not affected by machines. Anthony Ward, known for bold bets on cocoa markets, argued that the rise of computerised trading has reached breaking point, distorting prices and creating uncertainty for investors and those that rely on commodities. “People are getting very nervous about what will happen in a few years when computers can do all this stuff,” he said.