Commodities Corporation
Encyclopedia
Commodities Corporation was a financial services company, based in Princeton, New Jersey
that traded actively across various commodities. The firm was noted as one of the leading commodity and futures trading firms. CC is credited for launching the careers of many notable hedge fund investors and for its influence on global macro
investing.
The company was acquired in 1997 and operates as a subsidiary of Goldman Sachs
.
, had studied commodities at MIT. As a result of his PhD thesis work on cocoa, Weymar took a job, working for Nabisco
in 1965. Hostetter, who had been Weymar's mentor, had begun trading stocks and commodities in the 1930s working for Hayden Stone. Hostetter's, whose simple principles for trading are still widely circulated, joined the firm at the age of 67 trading part time and working to create trading systems to be used by the entire firm.
Among CC's other co-founders were Nobel laureate economist Paul Samuelson
, who was also Weymar's thesis advisor, Paul Cootner
, an MIT professor, and Frank Vannerson, a colleague of Weymar's from Nabisco. CC would bring a large number of PhDs onto its payroll through the 1970s. CC was originally founded to take advantages of trading opportunities in tradable physical commodities but would later branch out into trading other futures such as currency.
After betting very successfully against the market in 1980, the firm began to receive significant attention. The firm partnered with Paine Webber Jackson & Curtis
to launch the Princeton Futures Fund, a $23 million investment fund for US investors in 1981. The company was profiled in Fortune magazine in 1981. The firm was also later featured prominently in the book, "Market Wizards", a series of interviews with the worlds top traders of the 1980s. The book was written by Jack Schwagger
of Commodities Corporation. The firm also completed construction of a new headquarters building in Princeton, NJ in 1980.
In 1989, CC sold a 30% interest in the company to ORIX Corporation for $80 million. In 1995, CC acquired an 80% interest in a unit of Crédit Commercial de France
.
Commodities Corporation was acquired by Goldman Sachs
in 1997 for an undisclosed amount, estimated to be in excess of $100 million. At the time of its acquisition, CC had approximately $2 billion in assets under management. The firm was subsequently renamed Goldman Sachs Princeton LLC and served primarily as a fund of funds. Today, the business is known as Goldman Sachs Hedge Fund Strategies and is part of Goldman Sachs Asset Management.
Also, a number of well-known Wall Street traders
began their hedge fund careers at Commodities Corporation, including:
Princeton, New Jersey
Princeton is a community located in Mercer County, New Jersey, United States. It is best known as the location of Princeton University, which has been sited in the community since 1756...
that traded actively across various commodities. The firm was noted as one of the leading commodity and futures trading firms. CC is credited for launching the careers of many notable hedge fund investors and for its influence on global macro
Global macro
Global Macro is defined as the strategy of investing, on a large scale, around the world using economic theory to justify the decision making process...
investing.
The company was acquired in 1997 and operates as a subsidiary of Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
.
History
The company was founded by Helmut Weymar and Amos Hostetter (d. 1977) and with $2.5 million of capital in 1969. Weymar, who was a childhood friend of Hostetter's son Amos Jr.Amos Hostetter, Jr.
Amos B. Hostetter, Jr. was born in 1937. Hostetter, Jr is the founder and former chairman and chief executive officer of Continental Cablevision. With an estimated net worth of around $2.2 billion, he is ranked by Forbes as the 350-richest person in the world .-Biography:Amos Jr...
, had studied commodities at MIT. As a result of his PhD thesis work on cocoa, Weymar took a job, working for Nabisco
Nabisco
Nabisco is an American brand of cookies and snacks. Headquartered in East Hanover, New Jersey, the company is a subsidiary of Illinois-based Kraft Foods. Nabisco's plant in Chicago, a production facility at 7300 S...
in 1965. Hostetter, who had been Weymar's mentor, had begun trading stocks and commodities in the 1930s working for Hayden Stone. Hostetter's, whose simple principles for trading are still widely circulated, joined the firm at the age of 67 trading part time and working to create trading systems to be used by the entire firm.
Among CC's other co-founders were Nobel laureate economist Paul Samuelson
Paul Samuelson
Paul Anthony Samuelson was an American economist, and the first American to win the Nobel Memorial Prize in Economic Sciences. The Swedish Royal Academies stated, when awarding the prize, that he "has done more than any other contemporary economist to raise the level of scientific analysis in...
, who was also Weymar's thesis advisor, Paul Cootner
Paul Cootner
Paul H. Cootner was a financial economist noted for his book The Random Character of Stock Market Prices....
, an MIT professor, and Frank Vannerson, a colleague of Weymar's from Nabisco. CC would bring a large number of PhDs onto its payroll through the 1970s. CC was originally founded to take advantages of trading opportunities in tradable physical commodities but would later branch out into trading other futures such as currency.
After betting very successfully against the market in 1980, the firm began to receive significant attention. The firm partnered with Paine Webber Jackson & Curtis
Paine Webber
Paine Webber and Company was an American stock brokerage and asset management firm that was acquired by the Swiss bank UBS AG in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. Operating with two employees, they leased premises at 48...
to launch the Princeton Futures Fund, a $23 million investment fund for US investors in 1981. The company was profiled in Fortune magazine in 1981. The firm was also later featured prominently in the book, "Market Wizards", a series of interviews with the worlds top traders of the 1980s. The book was written by Jack Schwagger
Jack D. Schwager
Jack D. Schwager is the author of the books Market Wizards, New Market Wizards, Stock Market Wizards, and Getting Started in Technical Analysis...
of Commodities Corporation. The firm also completed construction of a new headquarters building in Princeton, NJ in 1980.
In 1989, CC sold a 30% interest in the company to ORIX Corporation for $80 million. In 1995, CC acquired an 80% interest in a unit of Crédit Commercial de France
Crédit Commercial de France
Crédit Commercial de France was a commercial bank in France, headquartered in Paris, avenue des Champs-Élysées. It became a wholly owned subsidiary of HSBC in April 2000, and was renamed HSBC France on 1 November 2005....
.
Commodities Corporation was acquired by Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
in 1997 for an undisclosed amount, estimated to be in excess of $100 million. At the time of its acquisition, CC had approximately $2 billion in assets under management. The firm was subsequently renamed Goldman Sachs Princeton LLC and served primarily as a fund of funds. Today, the business is known as Goldman Sachs Hedge Fund Strategies and is part of Goldman Sachs Asset Management.
Former employees
In addition to its founder, the firm's early co-founders included a number of notable individuals, including- Paul SamuelsonPaul SamuelsonPaul Anthony Samuelson was an American economist, and the first American to win the Nobel Memorial Prize in Economic Sciences. The Swedish Royal Academies stated, when awarding the prize, that he "has done more than any other contemporary economist to raise the level of scientific analysis in...
, nobel laureate economist - Paul CootnerPaul CootnerPaul H. Cootner was a financial economist noted for his book The Random Character of Stock Market Prices....
, professor of finance at the Massachusetts Institute of TechnologyMassachusetts Institute of TechnologyThe Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
, noted for his role in the development of the Random walk hypothesisRandom walk hypothesisThe random walk hypothesis is a financial theory stating that stock market prices evolve according to a random walk and thus the prices of the stock market cannot be predicted. It is consistent with the efficient-market hypothesis....
in his 1964 book The Random Character of Stock Market Prices. - Amos Hostetter, notable equity and commodity trader for Hayden Stone
Also, a number of well-known Wall Street traders
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
began their hedge fund careers at Commodities Corporation, including:
- Paul Tudor JonesPaul Tudor JonesPaul Tudor Jones II , is the founder of Tudor Investment Corporation, which is the management company for his various private investment partnerships, also referred to as hedge funds. As of March 2011, he was estimated to have a net worth of USD 3.3 billion by Forbes Magazine and ranked as 336th...
, founder of Tudor Investment Corporation - Louis BaconLouis BaconLouis Moore Bacon is an American hedge fund manager, trader and founder of Moore Capital Management.-Family and education:Bacon was born in Raleigh, North Carolina; his father, Zachary Bacon Jr., founded Bacon & Co. and led Prudential Financial’s and Merrill Lynch’s real estate efforts in North...
, founder of Moore Capital ManagementMoore Capital ManagementMoore Capital Management LLC is an American hedge fund sponsor-owned by its employees. It was founded in 1989 by Louis Bacon. and in 2011 Moore Capital Management's largest funds were the $7.4 billion Moore Global Investment Fund, and the $4.6 billion Moore Macro Managers Fund.-Description:MCM was... - Grenville Craig, founder of Tiverton Trading
- Bruce KovnerBruce KovnerBruce Stanley Kovner is an American businessman. He is the founder and Chairman of Caxton Associates, a hedge fund that trades a global macro strategy and is considered amongst the worlds top and largest 10 hedge funds with an estimated $14 billion under management...
, founder of Caxton Associates - Christian Levett, founder of Clive Capital LLP
- Michael Marcus, a leading commodities and currency trader
- Jack D. SchwagerJack D. SchwagerJack D. Schwager is the author of the books Market Wizards, New Market Wizards, Stock Market Wizards, and Getting Started in Technical Analysis...
, an author on financial topics and hedge fund manager - Ed SeykotaEd SeykotaEdward Arthur Seykota is a commodities trader, who earned S.B. degrees in Electrical Engineering from MIT and Management from the MIT Sloan School of Management, both in 1969. In 1970 he pioneered Systems trading by using early punched card computers to test ideas on trading the markets...
, a computer scientist, technical trader and pioneer in System Trading - Willem Kooyker, founder of Blenheim Capital