Written on 13 April 2015.
Gaëtan Lupinacci first gave a short overview about risk management and how to develop a risk management strategy using hedging tools (swaps, options, futures, etc.). He introduced commodities that are broadly used in almost every industry. He focused his presentation on the main commodities traded: energy and metal markets (crude oil, natural gas, base and precious metals, coal, power, etc.
He then focused on the oil market and explained the mechanism of commodity hedging contracts. He concluded his presentation by discussing job opportunities in the commodity sector.
What is the main objective of your presentation?
It is a double objective: first, introduce EDHEC students to commodity price risk management, and second, to present the daily duties and challenges of my job. Energy risk management is my main area of focus. I am in sales derivatives and my role is to sell energy derivative products to clients. The key for me is to identify who are my clients, what are their needs, and accompany them in setting hedging strategies. I focus mainly on oil products, which includes all kinds of petroleum products. I also presented the various commodities players (niche, big, corporate, banks, etc.) to help students understand the importance of interaction with such players.
What advice would you give to EDHEC students wishing to work in commodities?
Be curious, be passionate and be resilient. Curiosity is the key because you need to understand all the aspects of a client’ needs in order to build a proper relationship with him. You need to provide the best service to your client; therefore you need to understand the mechanisms and implications of putting trading strategies in place. You need to acquire a lot of knowledge about the commodity markets. It is not about executing trades but originating trades also. I am working on oil and I have many different types of clients with different exposures to risk. You need to follow market fundamentals, look at what the competition is doing, study macroeconomics, etc. In short you need to provide a customised service to each client.
Why did you choose EDHEC Business School?
I chose EDHEC because its expertise in Finance is internationally recognised and for its network. I wanted to work in London and EDHEC is recognised in the City.
Why did you choose the MSc in Financial Markets?
I discovered sales and commodities during my gap-year internship at Société Générale. After my gap-year, I was hesitating between trading and asset management. The MSc in Financial Markets offers two majors in trading and asset management. This programme fit my career objectives perfectly.
How did you find your current position?
I contacted the boss I had during my gap-year and asked him if the team was looking at some possible candidates in London. It is really important to stay in touch and start building your network at an early stage.
Any last advice to EDHEC students?
Use Bloomberg IB to get an internship or a job. It is a really important tool that often students are forgetting to use.
3 words to sum up EDHEC?
• EDHEC and its brand, reputation…
• Strong network