Kishan Raja, Hawksmoor Investment Management

Role and responsibilities: Investment manager (Hawksmoor Investment Solutions) to help manage the Hawksmoor Model Portfolio Service and additional segregated mandates

Years in industry/years at firm: 8 years in industry, with September 2024 marking six years at Hawksmoor Investment Management

Top three fund picks: The three funds are all focused on different geographies.

First, Brown Advisory Global Leaders seeks to own 30-40 companies with strong leadership and can generate high and sustainable returns on investment capital.

Second, Gresham House UK Multi Cap Income is a UK equity income fund that seeks to invest across the market cap spectrum focussing on small and mid-cap names with their private equity style approach to public markets.

Finally, Oakley Capital Investments is an investment trust offering investors access to a high-conviction portfolio of founder-led European growth companies. I am very comfortable with how they manage money, and they all do it in very different ways.

Personal AUM: Team-based approach – wider team consists of seven with assets approaching £2bn.

What first attracted you to the world of wealth management? 

The world of investment management is a game that never ends. A healthy dose of competitiveness intertwined with a natural sense of curiosity allows you to build a career where you remain a student of the game until the very end. Both personality traits suit this industry very well!

Who is your investment hero or someone you admire in the industry? 

This is a difficult question because your investment philosophy tends to get moulded by a variety of individuals until you form your own and even then, it continues to evolve. If I was forced to select one name, it would be Howard Marks (pictured below), co-chairman of Oaktree Capital Management. I am sure this name would have been mentioned many times, but he shaped my thinking early on. First-level thinkers look for simple answers to questions. Second-level thinking is significantly deeper and more dynamic. Check out his book, The Most Important Thing to know more and don’t forget to subscribe to his memos either.

What is the biggest issue facing this generation of wealth managers? 

The ultimate bottom line is what returns clients take home after all expenses have been deducted and the effects of inflation have been accounted for. The ability to preserve capital in real terms over extended periods is what counts. Justifying your fees in the attempt to meet this objective, in what is an incredibly competitive environment, is only likely to become more difficult. We have already seen a race to the bottom for Model Portfolio Services with solutions being offered at incredibly low prices which provides fantastic value-add for the adviser and end client.

Second, we have seen an upward market for over a decade now except for the during the Covid pandemic in 2020. These strong returns are likely to lead to complacency for wealth managers because it has been such a strong period with several dominant themes having led this, namely 1) US over non-US, 2) Growth over Value and 3) Large cap over small cap and 4) Passive over active. The danger is that this generation of wealth managers assumes it is always this easy. It’s important to study previous decades, of which there are several, which can be described as “lost decades” and how the leaders change over time. Ultimately, over the long term, earnings drive returns.

What were your first, best and worst investment decisions? 

My first investment decision was to buy units in an open-ended emerging market fund managed by Newton Investment Management. The thinking behind this was incredibly limited and honestly, I can confess this was simply random. A far cry from the rigorous hurdles a fund must cross to make the cut now! By far one of my best investments was loading up on Oakley Capital Investments during Covid, which has since gone on to deliver stellar performance.

On the losers, as opposed to picking just one investment, this would have to be attempting to switch between the value and growth investment styles early on in my career. It’s safe to say that game is now redundant. As I have gained more experience, I have decided that the best portfolio is one that is constructed for the long term, diversified by manager, geography and style. So, I don’t look to time markets, instead preferring a strategic approach – although I do like to add some value via tactical opportunities now and then.

What advice would you give to young people interested in working in wealth management? 

The wealth management industry itself is so incredibly vast so doing an internship across the summer I believe is vital. Success undoubtedly can be defined and measured in various ways and in many cases, it is completely subjective. Understand what success looks like to you because I highly doubt that if you do not get clear with this from the outset, you are likely to struggle to find a level of satisfaction. Oh, and do not ever stop asking questions – many of our research meetings overrun and we have no issue with that as there’s always more to grasp.

Given my keen interest in mindfulness and meditation, I believe strongly that emotional intelligence is on a par with intellectual intelligence. I am of the view that this is a huge value add to my role. In so many cases, there isn’t a right or a wrong answer – there are simply different lenses and more than one way to skin a cat. Understanding your own strengths and weaknesses and those of your colleagues is an essential component to being able to thrive in such a challenging and stressful environment where no two days are the same.

In what way does being of a younger generation help you in your role? 

There are many admirable factors that the ‘older’ generation possesses and demonstrates. They have a very strong work ethic which I admire and when it comes to acting as custodians of clients’ capital, it is a role they take seriously. This strong work ethic typically spills into a focused attitude and a disciplined style of working – nothing to shy away from! Having said that, once you have done a job over multiple decades and have witnessed several market cycles the odds are, their willingness to accept new and alternative options could be somewhat diminished.

I am fortunate to have a great feedback loop in my team whereby we regularly question and challenge one another, have open lines of communication and I believe my (younger) voice gets heard due to the competitive yet collaborative environment we work in. We have a saying in the office: ‘The answer is 7 – what’s the question?’ As a result of this, my view of what is fourteen halved is just as valid as the perceived wisdom of what is four plus three and this aids many aspects of my daily job as it can impact decision-making around fund selection, portfolio construction and risk management for instance. I believe I have earned respect from my colleagues because I have learned from them and I know that any recommendation I put forward is thoughtfully considered and thoroughly researched.

What is the biggest social issue surrounding the wealth management industry? 

I appreciate a lot of people would refer to gender and ethnic inequalities but in my personal experience, I haven’t found that to be the case.

Most will read this from an ‘E’ or ‘G’ perspective, but I like to also consider the importance of ‘S’ and how our profession works within our respective communities. This to me should be embedded in and embraced as part of the culture of the firm. The ‘E’ and ‘G’ factors are much more accepted and understood throughout the world whereas the ‘S’ factor remains very subjective and misunderstood. For example, understanding the roles of companies as well as their impact and importance in their communities.

The wealth management profession can accelerate the importance of ‘S’ by holding senior management to account. Arguably, this could be easily enhanced through a positive corporate culture where the C-suite adopts and upholds these values and makes capital allocation decisions accordingly. The changing face of capitalism means that shareholders, stakeholders and employees can improve ‘E’, ‘S’ and ‘G’ to the benefit of all as well as the planet and this is what I am aligned with.

What has been the most significant moment of your career so far? 

Joining Hawksmoor Investment Management was a great idea. They say if you’re the smartest person in the room, you’re in the wrong room and by that measure, I have a rough gauge that I am in the right room and firm. Further, in January 2022 I joined Hawksmoor Investment Solutions under Richard Philbin and that has personally been monumental for both my personal and career growth, especially if you are open to all your ideas and thinking being challenged all the time!

What’s the perfect tea and biscuit combination? 

Masala Chai & Jammy Dodgers. Don’t knock it ‘til you’ve tried it.

You are marooned on a desert island: Choose one book, one album and one practical item.

Book: A Manual of Self Unfoldment

Album: Graduation – Studio Album by Kanye West

Practical item: Knife

You have a time machine: Do you go to the future or the past? When and where? 

Neither – keep your mind where your hands are and stay in the present moment.

You can live in any country in the world from tomorrow, but you can never leave that country: Where? 

Mauritius – beautiful beaches and great downtime (provided I still have strong wifi).

Which three people, dead or alive, would you invite to a dinner party? And what would you cook? 

Ryan Reynolds, Connor McGregor and Donald Trump – because this would be hilarious.

You are granted one mild superpower: What do you choose? 

Weather manipulation – just to wind people up.