Philip Engel Carlsson’s journey into the world of commodities was serendipitous, if not entirely accidental.
Despite the unusual path to discovering his professional passion and raison d’être, Engel Carlsson quickly developed his talents for uncovering value and opportunity in an intricate and complex world.
The allure of commodities, with their global benchmarks and regional nuances, became a driving force, injecting each day at the office with a blend of challenge and opportunities.
He acknowledges the challenges faced by commodity traders lacking the safety net of an index. In a market where alpha is derived directly from market fluctuations, a deep understanding of commodity intricacies is paramount.
CFI: What excites you about the business world in general?
PEC: I ended up in commodities by a coincidence, while working for a Danish investment bank. I fell in love with the product range and the fundamentals of commodity trading. It’s an amazing asset class, with global benchmark price-function while being anchored regionally. This makes for exciting days at the office.
CFI: What lessons have you carried forward from the early years of your career?
PEC: As a commodity trader, getting involved in speculative trading to capture up and down movements, you don’t have an index to hang onto. We truly succeed in deriving alpha from the market.
While working for a tech-driven bank, and later co-founding a power-trading company, I knew that technology was key. And that great stuff can be archived via automation.
CFI: What motivates and enthuses you about the business you now lead?
PEC: I’ve been able to tailor my career and job around the things that most interest me: technology and commodity markets. I haven’t had to make any compromises. I’ve designed and built the trading technology used to harness opportunities.
My emphasis is on automation of tasks to derive the best opportunities the market has to offer. This is best done by delivering alpha, low correlation, and keeping potential drawdowns to a minimum.
CFI: What is special about your organisation’s management style? Can you share any professional secrets?
PEC: We don’t need a large team; we’re driven by technology. Calculo people are seasoned professionals with long experiences in their fields — all of which are centred on financial markets. I’m very proud of our team, and its pedigree.
Philip Engel Carlsson is CEO of alternative fund-management firm Calculo Capital
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