Strong Source Episode 11 with Tom Kopczynski
Jun 14, 2024
Tom Kopczynski, a seasoned commodity market expert and former senior cocoa trader at Blenheim Capital Management, shares his insights into the world of trading. He discusses the impact of macroeconomic factors on commodity markets and the challenges faced by fundamental traders in an increasingly electronic environment. Tom reveals the importance of order flow and origin hedging for cocoa positioning, and contrasts hedge fund culture with merchant trading. He also reflects on the future of the cocoa industry and the need for better risk management among producers.
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From Lehman Intern To Blenheim Trader
- Tom Kopczynski got hired at Blenheim after a last-minute job search and an internship at Lehman led him to the role.
- He initially knew little about Blenheim but was surprised to interview with heavyweight figures like Stanley Fischer.
Fundamentals Built Their Edge
- Blenheim's edge was fundamental research and exclusive information assembled into balance sheets.
- They built trust with origin, merchant and consumer contacts to estimate supply and demand before the market did.
Use Data To Support, Not Replace, Judgement
- More data does not always improve balance sheets because most real-time figures arrive with a lag.
- Use data selectively to assist trading, not as a substitute for fundamental judgment.
