Fresh Perspective

Adam Jackson

Director of metals trading at Aegis Hedging Solutions LLC

While he was studying business and finance at Tennessee Technological University, Adam Jackson developed an interest in economics, trading and markets. After receiving a Bachelor of Science in finance in 2007, Jackson says he wanted to pursue a trading career without having to move to Chicago or New York City. He began his career with energy trading roles at Mirant Energy Trading and then at Tennessee Valley Authority.

In 2012, Jackson transitioned to electricity trading and then metals trading for Pittsburgh-based Alcoa Corp.

“That was really my first introduction to scrap markets,” he says. “We executed hedges and provided pricing and other services for the scrap team across Alcoa.”

Jackson says he’s not the first person in his family to work for Alcoa, either. “I will say I’m a third-generation metals guy. My great-grandfather and my dad both retired from Alcoa Aluminum.”

A few years ago, Jackson left Alcoa to start Nexidus Commodities, a firm focused on helping companies in the industrial and manufacturing sectors to hedge their exposure to base and precious metals. He says, “I saw a need for midsize and smaller companies to really have access to hedging specialists without needing to invest in salaries, systems and technology to run a hedge book.”

Aegis Hedging Solutions LLC, The Woodlands, Texas, acquired Jackson’s business in 2020, and he became director of metals trading. Jackson says he is currently focused on growing Aegis’ ferrous hedging client base.

Recycling Today (RT): What were some lessons you learned when you started Nexidus Commodities?

Adam Jackson (AJ): It was a lot of learning. I had never managed a business; I’d never started a business. I’ve always been entrepreneurial, but I’d never taken that step to go out on my own. It was fun. People will say that you never work harder until you’re self-employed. That’s definitely true. From managing clients’ exposures, following the markets, doing accounting, attempting some marketing, it was a really good experience to learn different areas of the business that I had not really had that much exposure to.

RT: What do you do in your job on a day-to-day basis at Aegis as director of metals trading?

AJ: It changes by the day, which is what I enjoy about it. Our team is focused on helping to expand our manufacturing client base and scrap client base and really provide better solutions for managing risk. As you may expect, our clients’ businesses are metals-intensive. But, one day I may be talking to a beverage can consumer who’s worried about prices going up even further on their aluminum, and then the next I may be talking to a scrap trader or a demolition operation or somebody who has a different problem on a different side of the equation for hedging. So, it’s fast-paced; it changes. I really enjoy learning about our clients’ businesses and the challenges that they face, and I always enjoy solving their problems.

RT: What are some trends you have noticed related to trading and hedging?

AJ: Volatility in the markets has been really high since last summer. We’re seeing a general increase in hedging demand across the board, from production to midstream to downstream to scrap. Some markets have climbed to historically high levels. Metal prices and volatility seem to matter more today than they have in a long time. ... We were in a bear market for quite a while, but now we’re seeing lots of folks want to learn about the products and solutions available to manage price risk.