We are financial advisors who specialize in tailored risk management solutions
We work with our clients in three main areas: Hedging Strategies, B2B International Transfers, and Investment Solutions.
We help companies become more efficient in their financial operations from a risk management perspective.
By working hand in hand with our clients, we get to fully understand their areas of exposure, allowing us to deliver a personalized solution that satisfies their needs.
An aluminum extrusion company importing primary aluminum as a resource material needs the raw material to transform into different products, one of them, aluminum profiles. The company is exposed to a future rise in the price of primary aluminum, referenced to LME Aluminum.
Due to raw material processing times, it is difficult for the company to transfer that price difference to their customers. They decide to hedge their risk of 2,000mt through a financial position, protecting their raw material purchasing price for the next four months.
A hedge was made through Monthly Average Futures (MAF) and the result was very positive financially speaking since the average price of aluminum increased more than 20% during that period. At the end of the 4 months, the hedges resulted in a financial gain of USD 668,707.
The goal of the applied strategy was to offset any potential rise in the LME Aluminum price. The result is a financial gain obtained by a profit made on their hedge, which has offset any potential raw material losses for the overall commercial operation purchase.