One more commodity hedge fund bites the dust. Same excuse. Machines are distorting the commodity markets and making the lives of fund managers more difficult. I don't trade commodities. However, I find it hard to accept his excuse. If machines distort the markets and make them diverge from fundamentals, wouldn't an inefficient market make it easier for skilled money managers to make money? Isn't that value investing is about? Taking advantage of the market when it is trading away from the fundamentals. Why are these skilled highly paid professional money managers complaining? Maybe I missed something as I don't trade commodities. https://www.reuters.com/article/us-...nds-close-as-computers-dominate-idUSKBN1FW0E4 Ward blames the rise of computer-driven funds and high-frequency trading for forcing him and some other well-known commodities investors to close their hedge funds and look for opportunities where machines can’t make a difference. While computerized trading is not new, Ward and others argue its steady rise has reached a tipping point that is distorting prices and creating uncertainty not only for investors, but for chocolate firms, carmakers and others who 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. “It was just too big, too quick, too dramatic. And completely against the fundamentals,” Ward told Reuters. Commodity markets fell across the board that month after weak factory data in China raised fears of lower demand from the world’s top consumer of raw materials. Ward blamed the slide in cocoa on what he regarded as misplaced selling by computer-driven funds reacting to the Chinese data, given China has scant impact on the cocoa market. “The actual fundamentals in cocoa were extraordinarily bullish in January 2016. We were forecasting the largest harmattan in history, which is exactly what happened,” he said. His prediction that a hot, harmattan wind from the Sahara desert would hit harvests in Ivory Coast and Ghana and drive cocoa prices higher did come to pass - but not before the fund had been forced to cut its losses when the market slumped. At the end of 2017, Ward closed the CC+ hedge fund that had invested in cocoa and coffee markets for years.