Connecticut-based DKR has decided to liquidate the DKR Commodity Arbitrage Fund after a run of poor performance attributable to a big bet on cocoa which went badly wrong. The decision to wind up the fund is a sad demise for a strategy which, under Jim Glover, had a successful track record for more than five years. At its peak, the fund had assets of $500 million.
The cocoa market sparked into life in late 2002, when civil unrest seemed to threaten the disintegration of the Ivory Coast, producer of 40% of the world's cocoa supply. But things weren't