How do the traders and portfolio managers interact at Comgest?
Every time we execute it’s stored in a database where the portfolio managers (PM) have access as well so they can see themselves how trades have gone. There is a certain overlap where traditionally traders and PMs have been quite segregated.
There is segregation of duties of course, but we believe that the data should be shared as much as possible for transparency. Everyone can then see how a trade performed, detail implicit and explicit costs or how long each stage in the process took.
We also share group team chats with each of the PM groups, so we’ll be their eyes and ears while they’re traveling, with companies or doing research, as often its unproductive for them to follow real-time price movements. If anything happens, any big moves or relevant news at all we flag it into the chat and that’s how we kind of share the role. We let them know any orders we have going, how it’s going in real-time and then they can see it afterwards in the database as well.
Basically, we’re trying to ensure that both sides have enough space to do what they’re best at.
What has influenced this set-up?
I think it’s the firm’s flat structured approach that enables this collaboration in how PMs and traders interact. I know for us it works to be as close as possible and obviously to work in tandem. With the proliferation of outsourced trading firms popping up, it is more important than ever to demonstrate the additive value of the desk showing the difficulty another firm would have to effectively play the role of an in-house desk.
Perhaps for some firms that have particular regions, certain trading types or a larger investment universe with generic benchmarks to track could certainly outsource a portion of it in order to meet their needs.
Has this collaborative always been the case?
It has certainly gotten more and more that way. It has evolved quite organically and we’re always looking to improve it, but it’s probably been this way for the last five years. We’re stock pickers investing in quality growth companies, so our universe is quite concentrated and it really requires that hands-on approach rather than relying on automation.
We’re often trading single names, and we’re very careful about the execution decisions we take and very conscious not to leave any footprint where possible.
Would you say that traders’ skill-sets have changed over the years?
The old-style trader was a bit more brash and I would like to think this has changed, you definitely need to be more humble, thoughtful and a deep thinker, but then also have some marketing/relationship management skills as well as some coding knowledge.
If you look at our desk throughout the day it’s a rather quiet environment, quite reflective and focussed, and it’s definitely a more quantitative type of humble, deep thinking, courteous, polite individuals we seek to maintain great relationships.