Holly Armstrong ’13 was at a crossroads during her sophomore year at Texas A&M University. She had been working toward a mechanical engineering degree, but she was beginning to doubt that career path. That’s when she was introduced to TRIP, the Trading, Risk & Investments Program at the Mays Business School.
“TRIP absolutely changed my life,” Armstrong said. In December 2014, she will graduate with a master’s of science in finance and a certificate in trade, risk and investment. More important, she will have earned the skills necessary to succeed in a career about which she is passionate.
At the heart of this inventive program is Professor Detlef Hallermann, director of TRIP and the Reliant Energy Securities and Commodities Trading Center at Mays. For more than a decade, Hallermann has strived toward the development of the whole student, providing moral support and career coaching along with a world-class education. His former students’ professional success is a testament to the quality of the program he has built at Texas A&M.
Finance Education Evolution
“TRIP is where industry and academics come together,” explained Hallermann. There are three key elements to the program: academic coursework, collaboration with faculty and peers in the state-of-the-art Reliant Energy Trading Center and interaction with board members.
Collaboration with industry gives Texas A&M University finance students a distinct advantage.
The academic portion begins with Finance 368, Trade Floor Dynamics. The course includes significant interaction with board members and a week of visits to facilities such as coal power plants, gas storage facilities, drilling rigs and other locations. “Many professionals trading these commodities have no firsthand experience with them,” said Hallermann. “Seeing and handling the commodities transforms the way students mentally interact with the assets. They are no longer just numbers on a screen.” These field trips are important to Hallermann, who wants his students to have more than just a theoretical understanding of finance when they graduate.
“Our students are getting much deeper preparation than their peers,” said Hallermann.
The final class project involves an in-depth job shadowing experience at a sponsoring company that provides the basis for a written report students present to TRIP board members.
“Presenting to a roomful of potential future employers is intimidating for sophomores and juniors, but it’s an essential part of their training,” said Hallermann. “Students present to board members several times before they graduate, gaining confidence and presentation skills the only way possible—through experience.”
TRIP students also gain firsthand knowledge of trade through the Tanner Fund. Established with a $250,000 gift from Jamey and Richard Tanner ’53, the Tanner Fund puts students in charge of managing a live portfolio. This work takes place in the Reliant Energy Trading Center, “one of the crown jewels of the business school,” said Hallermann. This high-tech facility equips students with a genuine investment experience, as they use the same skills and techniques as professional money managers and use real money to trade and invest.
The Reliant Energy Trading Center was created in 2000 through a gift from Mays corporate partner Reliant Energy. “It’s the ultimate ‘flipped’ classroom,” said Hallermann. Instead of hearing lectures and completing homework, students work collaboratively with faculty in the space to explore complex concepts.
“It has changed the way we teach,” said Hallermann. “In my opinion, this is the next evolution in finance education.”
Professional Polish
In 2 ½ years, TRIP takes raw but highly talented Aggies and polishes them into experienced professionals with the skills needed to be an immediate asset to a company. Through specialized coursework, hands-on experience and close collaboration with industry sponsors, TRIP students are prepared to meet the demands of a complex career.
The proof? The program boasts 100 percent placement for its graduates. On average, these students have a starting salary that is 25 percent higher than other Texas A&M finance majors and typically experience career advancement and income growth faster than their non-TRIP peers.
TRIP doesn’t benefit students alone. Cody Moore ’91, ’93 (MBA) is a senior vice president and head of North American gas and power trading for EDF Trading. One of the original sponsors of the program, EDF has been on the TRIP Industry Advisory Board since 2008.
EDF considered the program a pipeline for talent. “TRIP students have the specialized skill set we need and are able to contribute right away,” said Moore. “The same is not always true of students with a general finance degree. The return on investment was evident with our first class of interns. They came in, did the same work that our employees were doing and made a solid contribution.”
Moore loves working with Aggie interns. “They have the technical skills we need, and they also have a great attitude.”
Faith in the Future
Hallermann first conceived TRIP in 2007 as an opportunity to better serve students and industry partners. After gaining approval from the university, he began recruiting students into the program—just as the economy started to fall apart in 2008.
“The market was crashing as we were telling recruits that finance was a great career,” recalled Hallermann. “Fortunately, many students believed us.”
Through specialization and close collaboration with industry sponsors TRIP students like James Gant '14 and Sarah Petrey '15 are prepared to meet the demands of a complex career.
The first TRIP class had 12 students who worked with a board of eight companies. The current cohort has 28 students working with 37 companies that provide 60 internships per year. BP, Total, Phillips 66, GDF SUEZ Energy and the Texas Teacher’s Retirement Fund are just a few of these companies.
Board members may sponsor the program at three levels, the highest of which involves an annual $25,000 donation. Board members frequently guest lecture and support curriculum development in the Department of Finance.
Although he is anxious to grow the program, Hallermann insists on maintaining quality both for students and employers. He adds additional sponsors only when talented and motivated students are prepared to work for them. He is equally determined that every student has a top-rate experience with board companies.
Originally limited to undergraduate finance students, TRIP now includes math and engineering majors. About half of the students complete a BBA in finance while the rest complete their undergraduate and master’s degree in finance.
“It’s a win-win for TRIP graduates and the board members who hire them,” said Hallermann. “When they graduate, TRIP students have not only the knowledge to succeed in the field, but experience equivalent to a first-year analyst. These companies aren’t hiring an employee with potential, they are hiring a proven product.”
Set Apart by Experience
Internships are at the heart of TRIP’s success. Each student completes two semester-long internships during which they perform daily responsibilities and are often given responsibility for one or more larger projects. After the internship, they are required to give a final presentation to the TRIP board to demonstrate the commercial viability of their project to potential employers. Many students receive job offers based on their performance during these presentations.
TRIP internships are awarded through a competitive draft process during which companies from diverse areas of the finance industry select top students for their open positions. Draft selections are primarily based on the work students have demonstrated during presentations to the board, as well as their networking with board members.
During summer 2014, Armstrong interned with BP in their natural gas liquids marketing and supply team. To explore a range of work settings, she also previously completed internships with energy software company OpenLink as a project manager and with a global energy group as a pricing analyst.
At the next TRIP board meeting, Armstrong will make a final presentation to the board and, if all goes according to plan, will likely receive job offers from board companies. While board companies and TRIP students are under no obligation to make or accept job offers, 90-95 percent of TRIP students do go to work for board companies after graduation. The program acts as a two year job interview, during which students and companies get to know each other and see what each has to offer. This is part of the reason the TRIP placement rate is so strong.
No matter what jobs she’s offered, Armstrong knows she’s been prepared for workplace success. “TRIP gave me the opportunity to have a little taste of everything,” she said. “It showed me what careers are available and helped refine my strengths and interests.”
Armstrong couldn’t be more thankful for Hallermann, who recruited her into the program and invested fully in her success.
“Dr. Hallermann has a huge heart, and he is always there for his students,” said Armstrong. “Throughout the program, he did everything he could for me. He always supports you, but he also pushes you to grow. His goal is to make you comfortable with being uncomfortable.”
By Chrystal Houston
This article was originally published in the fall 2014 issue of Spirit magazine.
Texas A&M Foundation
The Texas A&M Foundation is a nonprofit organization that solicits and manages investments in academics and leadership programs to enhance Texas A&M’s capability to be among the best universities.
You can support the Trading, Risk & Investment Program in the Mays Business School with a gift of an endowment to the Texas A&M Foundation. For additional information about how to benefit TRIP, contact Brian Bishop '91, with the Foundation at (800) 392-3310, (979) 862-3615 or bbishop@txamfoundation.com.
