In the latest episode of the StrongSource Podcast, we sit down with Chris Mahoney, a distinguished trader and former Head of Glencore Agriculture. With a career that spans decades and includes leadership roles at some of the world’s most prominent trading companies, Chris offers listeners a rare and invaluable perspective on the intricacies of commodity trading.
A Serendipitous Start in Commodities
Chris’s entry into the world of commodities was nothing short of serendipitous. “I joined Cargill straight out of university,” he recalls. “I was at Oxford in 1981, and at that time, I was rowing in the Oxford-Cambridge boat race.” His commitment to rowing meant he could only consider companies that held their interviews after the race, leading him to Cargill. “Commodity trading seemed close enough to the financial or banking industry I was interested in, but it was not,” Chris adds, underscoring the role of chance in his career path.
Building a Legacy at Glencore
Chris’s career at Glencore is a testament to strategic thinking and rapid decision-making. After joining Glencore in 1998, he quickly rose to prominence within the company. Reflecting on his time at Glencore, he describes it as “a fantastic company to work for.” He particularly praises the lack of bureaucracy and the swift decision-making processes that were integral to the company’s success.
“Glencore was incredibly entrepreneurial,” Chris explains. “Ivan [Glasenberg] put his faith in the people that he trusted and then gave you plenty of leeway. But you could always get in contact with him 24/7. No ceremony, just call him.”
The Art of Asset Acquisition
One of the key strategies at Glencore was the acquisition of assets to support and enhance the trading business. Chris outlines how this strategy was implemented across various sectors within the company: “In Ag, we started buying country elevators in areas where the big players were not present—Russia, Ukraine, Kazakhstan. We wanted to buy stuff that would support and enhance the trading business and draw flows into the business.”
However, Chris is quick to point out that such investments are not without their challenges. “Investment in assets and companies is not so different from trading itself,” he says. “Of course, it’s a longer-term time horizon, and if you’ve made the wrong decision, it’s difficult to get out.”
The Human Element in Trading
When discussing what it takes to succeed in the high-stakes world of commodity trading, Chris emphasizes the importance of the human element. “The best risk control mechanism is to know and trust the people better than the VAR, better than position limits,” he asserts. This trust is crucial, especially when dealing with market volatility and unexpected challenges, such as the infamous $300 million loss on a cotton position in 2011.
Chris candidly reflects on this experience: “We were caught on the wrong side of what was essentially a squeeze. The issues were multiple—lack of liquidity, unfamiliarity with the commodity, and a team that we hadn’t worked with long enough to know their strengths and weaknesses.”
Leadership Lessons from Ivan Glasenberg
Chris’s time at Glencore also provided him with the opportunity to work closely with Ivan Glasenberg, one of the most influential figures in the commodity trading world. “Ivan is a very driven, very straightforward, and highly competitive individual,” Chris says. He adds that one of Ivan’s greatest strengths was his ability to “keep the company hungry, competitive, and entrepreneurial,” even as Glencore grew into a global powerhouse.
Balancing Work and Life
Despite the demands of his career, Chris has always made it a priority to balance his professional and personal life. “I worked very hard during the week and traveled probably 40-50 percent of the time, but I tried not to travel on weekends,” he shares. This approach allowed him to stay connected with his family while pursuing a demanding career—a philosophy that stands in contrast to the notoriously relentless work ethic often associated with figures like Marc Rich.
Conclusion: A Legacy of Strategic Leadership
Chris Mahoney’s career is a masterclass in strategic leadership within the commodity trading industry. His insights into asset acquisition, risk management, and the importance of trust and human relationships offer invaluable lessons for anyone in the field. Whether you’re a seasoned trader or new to the industry, Chris’s experiences provide a blueprint for navigating the complex and often volatile world of commodities.
This episode of the StrongSource Podcast is more than just a conversation; it’s a deep dive into the strategies and experiences that have shaped one of the industry’s most respected leaders.
Listen to the full episode to delve deeper into Chris’s journey and gain valuable insights into the intricacies of global commodity trading.
What is the Strong Source Podcast?
Our mission with the Strong Source podcast is to educate and inform, by creating a community where experts and guests from the entire commodity industry can share their unique perspectives. Martijn Bron, ex-cacao trader, and Alexander Sterk, ex-dairy trader and founder of Vesper, have a deep-passion for this industry, which inspired
