The “super spike†in copper prices has baffled metal watchers and caused consternation among the big copper consumers. It has also been enormously profitable for a handful of hedge funds.
The price of copper, up fourfold since November 2001, has doubled since early last year, closing at $5,749 (€4,754, £3,300) a tonne this week on the London Metal Exchange.
US hedge fund Touradji Capital is believed to hold a sizeable copper bet, along with Armajaro Holdings in the UK. Geologic, a smaller US hedge fund with a copper bet, climbed 12.3 per cent in March alone. In recent months, other funds that have made winning bets on copper include Ospraie Management, Moore Capital and Vega Asset Managment in the US and Winton Capital and Red Kite Management in the UK, according to individuals familiar with the matter.
