Galibier manages a diversified global portfolio across more than three dozen asset classes and sub-categories. We are active in global markets, alongside trusted partners and through a vast network of carefully selected external managers.
Our know-how is based on multi-year experience working with dealers and merchants focused mainly on physical-delivery commodities. We keep the know-how secret within the organization as we value the relationships we have been successful to build over the years. As an example we can now show what the usual business was in very simple terms. A tanker carrying oil from UAE (Port Of Fujairah) set off towards Europe (Hamburg). The spot price was $95.50/barrel and the current holder was willing to sell it at $95.50 while the potential buyers believe the prices would shoot up due to increasing demand towards $95.60 when the actual tanker arrives at the destination port, so they were happy to secure the price now at $95.57 for, say, 600 thousand barrels. On the other hand, the seller is also happy to sell at 95.54$/barrel because the current price is $95.50 giving him $0.04 more on one barrel. The two parties tend not to know each other and each use an agent just like our company. We step in and purchase 600 thousand barrels that are being carried to Hamburg at $95.54. (the seller made additional $0.04 per barrel, total $24 thousand). We sell this specific oil to the buyer at $95.57 per barrel, while he believes the fair price will be $95.60 giving him also $0.03 per barrel of possible profits. Galibier walks away with $0.03 per barrel in virtually risk-free transaction (reselling an agreement to deliver). On this particular trade we made gross profit of $18 thousand.
Typically, the deals are much more complex involving many parties and intermediaries. The bottom line is, we are able to arbitrage the asymmetric information gap and provide positive returns over the long-term.