Quant-focused investment firm Squarepoint is expanding into physical metals trading, combining its data-driven strategies with traditional commodity operations to compete with established players like Glencore and Trafigura, according to a report by Bloomberg.
Over the past year, Squarepoint has emerged as a significant trader in aluminium and cobalt, shipping metals across continents, sourcing ore from mines, and storing inventory to profit from price movements. Its affiliated firm, STG Ltd, led by former Goldman Sachs quantitative trading director Asad Samar, is also targeting copper and other metals while securing multi-year supply agreements and prepayment deals with producers.
The strategy leverages Squarepoint’s expertise in algorithms and quantitative analysis to enhance pricing, arbitrage, and risk management in physical trades. The firm has invested heavily in personnel with industry experience, including hires from Trafigura, Morgan Stanley, and specialist metals traders, and is expanding its banking relationships to support financing-intensive deals.
