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