Episode Description

In this episode of Fund Selectors, host Lucy Walker interviews Simon Evan-Cook, an experienced fund manager at Downing.

The discussion delves into Simon’s investment philosophy, the challenges and opportunities in fund management, and traits that distinguish great fund managers from average ones.

Simon discusses the importance of active management, the role of boutiques, and the significance of being true to your investment philosophy.

They also touch on industry trends, career risks, and founder fee structures.

Timestamps:

0:03 – Introduction by Lucy Walker
0:34 – Guest introduction: Simon Evan-Cook
2:16 – Simon’s investment philosophy
3:08 – Belief in active fund management
4:09 – Starting with a blank sheet at Downing
5:03 – Challenges and opportunities in fund management
6:21 – Identifying passionate fund managers
7:49 – Traits of exceptional fund managers: “Belicious”
10:54 – The importance of being true to one’s investment philosophy
13:00 – Evaluating fund managers’ flexibility and decision-making
17:03 – The impact of career risk on fund management decisions
19:38 – Advice for asset managers on handling career risk
23:30 – Simon’s approach to portfolio construction
24:57 – The role of diversification in Downing Fox portfolios
28:01 – The “Whiskey and Water” model
30:45 – Time in the market vs. timing the market
32:27 – Blending different investment styles
34:30 – Importance of bottom-up stock picking
36:09 – Understanding fund managers’ processes
38:00 – Team dynamics in fund management
41:03 – Curiosity in fund manager meetings
42:25 – Advice for asset managers presenting to fund selectors
44:50 – Fee structures and their impact
48:27 – Founders fees and long-term incentives
53:08 – Simon’s recommended book
55:30 – Importance of systems thinking
57:30 – Final question for the next guest