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The Derivative

Podshops, Prices, and Physical Flows: A Commodity Trading Framework with Stephane Bernhard of CAM/ETG

Apr 24, 2025
In this engaging conversation, Stephane Bernhard, CEO/CIO of CAM Multi-Strat Asset Management, shares insights from his 30+ years in commodity trading. He discusses the evolution of commodity trading and the importance of risk management, revealing why traditional VAR methods fall short. Stephane highlights his firm’s unique approach to merging physical and financial strategies in trading while tracing historical parallels in the market. Personal anecdotes from his experiences add depth to the discussion, making this a must-listen for trading enthusiasts!
01:29:34

Podcast summary created with Snipd AI

Quick takeaways

  • Commodity trading has evolved significantly, driven by the interplay of physical markets and systematic trading strategies, reflecting broader structural changes.
  • Freight markets serve as a key indicator of global supply and demand, with their volatility offering strategic trading opportunities for informed traders.

Deep dives

Investment Cycles in Commodities

The discussion highlights the cyclical behavior of the commodities market, where underinvestment is often succeeded by overinvestment. Low volatility periods tend to create an environment where increased demand leads to heightened volatility as resources are stretched. This pattern plays a crucial role in understanding the commodity dynamics observed in recent years, indicating that current trends may still be in their early stages. The speaker suggests that these cycles are symptomatic of broader, structural changes within commodity investment strategies.

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