COLLABORATION BY DESIGN
Seeking to improve investment
decisions by creating connections.
We decided long ago that an open, collaborative culture was theright choice for our firm and our clients. By actively sharing research and challenging one another’s views and potential blind spots, our investors create a diverse marketplace of ideas. They decide independently how to draw on it to help sharpen their own portfolio decisions and manage risk.
To support this model, we have a four-part framework…
1. HIRE COLLABORATIVE INVESTORS
A belief in collaboration won't mean much if we can't find the right investors to execute on it
We spend a great deal of time searching for and developing investment talent. The hiring process (20+ interviews in many cases) is focused not just on knowledge, skill, and experience, but also on intangibles such as humility, collegiality, open-mindedness, and a desire for continuous learning.
Seeking investors open to other views Candidates see the emphasis on collaboration right from the start. For example, we might ask an interviewee who covered a retail company at another firm how their views were shaped by colleagues on the firm’s real estate team: “What’s the state of the retail company’s real estate? Your organization has analysts who follow REITs. What do they think?” If the answers signal a lack of awareness and drive to seek out alternate perspectives, the conversation may stop right there.
WHERE COLLABORATION BEGINS EACH DAY
- To exchange investment ideas
- To provide insights behind the day’s headlines
- To learn from and challenge one another
- To say “good morning” and spend time together
2. INCENTIVIZE COLLABORATION
We don't just encourage investor interaction, we recognize and reward it.
An important structural support of our collaborative environment is our performance review and compensation process
Knowledge sharing across geographies
Investors are evaluated on their willingness and ability to share insights, incorporate other views into client portfolios, and mentor less-experienced investors.
At year’s end, investors are asked to list the five individuals outside of their immediate team who had the most positive impact on their performance. This feedback is part of a “mosaic” that impacts compensation
Our firm’s private partnership structure also provides incentive to work unselfishly and help others succeed: Election to the partnership requires votes from 75% of the 150+ existing partners
3. FOSTER A SILO-FREE ENVIRONMENT
We've deliberately structured our firm in ways that support an integrated, global dialogue.
4. CONTINUALLY INNOVATE
We scrutinize our practices to improve engagement and diversity of thought
Here are some examples:
PERPETUATING A CULTURE OF COLLABORATION
Why do we think this framework for collaboration is effective?
We have high retention rates among our investors, and when we ask them what they think is different here and why they stay, they will often answer that the level of collaboration enables them to “connect the dots” and develop more complete investment ideas than they could elsewhere.
Low turnover in our investment ranks allows for strong relationships and the trust that is essential to a collaborative process. We work constantly to nurture this culture and to find new ways to enable the global investment dialogue