air mauritius hedgingImg Src: interview

At the request of the representative of the Faculty of Law & Management, University of Mauritius Mr. Sadek Ruhmaly, Consultant Economist, conducted a two-day seminar at the Lecture Theatre 2. The topic of the talk: Hedging- An aptitude or a Strategy?

It was Mr. Ruhmaly who introduced the system of hedging at Air Mauritius in the late 1980s. This strategy was very successful at that time and he can be considered to be an expert in Hedging and Fuel energy.

The talk was held on two days: Monday 9th March 2009 from 13.00 to 14.00 and Wednesday 11th March 2009 from 12.00 to 13.00 (which actually ended at 15:30!).

Mr. Sadek has been cross-fertilised by great minds (S. Hawking, Lord Denning) and intellectually brilliant Mauritians.

Key terms heard: Poetry, literature, physics, pilot, Air Mauritius, Black Hole, Maths, Hedging, Strategy, freedom

Monday 9 March:

Most of the students from Finance and Law background were anxiously waiting at Lecture Theatre 2 for the opening of the talk. The lecture hall was jam-packed!

Mr. Sadek started with a “Good Morning” with a genuine English accent. Seriousness was seen on his face. He started with a statement: “Mon premier amour c’est la literature française et l’astronomie!” and read a French poem, he himself wrote last year. The poem describes his visionary views on Mauritius.

You come to the university to learn to think

The first issue was that “learning to think” is the most important thing in life. We have to be a Systemic thinker.

Being Fearless

“Those who know me, who have read about me, know that Sadek is not a Yes-Man”. He then told us the annecdote about his refusal (the only vote against) of the decrease of the Interest Rate at Bank of Mauritius.

Refinery Economics

Without the knowledge of refinery economics, it would be rubbish to talk about Oil Energy and Hedging. The below diagram was explained well:

The optimum equilibrium is not a static path.

Doing Nothing is a strategy but doing something when not required is Stupidity!

The choice of parameters in a formula is necessary.

Wednesday 11 March:

Despite being the Holi festival, the Lecture Theatre was full, again! However this time the duration of the talk was longer than expected. In the impressive CV of Sadek, we note that he is a Private Pilot, a Painter -Mystical Art, he likes Poetry and is a Mountaineer! Today he shared his passion with us. He brought some paintings which were displayed in the Lecture Theatre.

I have the crazy idea that if I would die, I would die with the most precious things that I carry in my bag!

Yes, Sadek indeed carries precious books/ documents in his brown bag. We were impressed by the number of book being shown to us, notably:

  • Bhagvad Gita
  • Geetanjali – Rabindranath Tagore
  • Pensees – Blaise Pascal
  • A Brief History of Time – Stephen Hawking
  • A book on Japanese Archery

What is 1 + 1?

Ans: you have to specify your assumptions, what is the model. for eg. in Binary 1 + 1 gives 01!

A PhD is a substantial contribution to knowledge. Pushing the frontier into the unknown.


I want you to be free. On the eve of Independence, I want you to achieve Holistic Independence. Take for eg. the cutting of umbilical cord -> this is a freedom symbol.

The foundation of daring is fearlessness and selflessness. These two are the fundamental core of grace.

The body is a perishable product, but you cannot kill the ideas.

Don’t be in psychic prisons -> Groupthink

Stop just looking, start Noticing.

The most stupid thing is to ignore that has been great minds in the world.

There is a difference between doubt and uncertainty.

President Obama has to understand Black Hole in order to get out of this systemic collapse.

I talk about the world of Abstract. use of senses on Knowledge.

Sarcasm is the highest form of wit.


The first issue in strategy is Acknowledgement.

The most brilliant poetry is one that has mathematical balance.

Grace in Mathematics, Science, Art.


Hedging can be an optimising strategy depending on the core of the business.

For each strategy there is a fallback strategy.

Playing Sudoku -3 at the same time and looking horizontally- need to have a lateral vision. Get your brain to work on 3 mysteries at the same time.

When you do hedging, don’t be caught in a circle of minds.

In Hedging, if you are distracted, you are losing.

You need not to have total control but total consciousness (of hedge funds which have a single agenda i.e. Portfolio maximisation). Control -> discrete ; Consciousness -> continuous

Economic Bubble burst because of Gargantua

Fundamental to Hedging is understanding the data

Hedging is freedom from uncertainty, moving from an unstable point to stable one.

At one point in time, you have to place your bets.

Tactical mistake -> no corporate strategy, no holistic view

Problem: options are mutually exclusive

Onion -> de layering and bringing to the core

Correlation does not infer causality.

Hedging is also an aptitude.

Strategy from the Nature

Hammerhead Shark

Fish Eagle

Microwave Generation

We, youngsters, we are of the Microwave Generation 😀

Papyrus Parchment & Computer Science

Mr. Sadek shown us a parchment. It is the first encryption on Floppy Disk.

Caravanners are the fist Internet system in Human Civilisation

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