YouSaid · the spoken record

Jean Hynes

lines on the record: 85
first: 2019-01-14
most recent: 2019-01-14
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Then I think secondly is one of the things we're working on at Wellington is feedback. This is true in life and true at work, like not letting things stew. Like you interact with people, we interact with people all the time. So if something's bothering you, just get it out right away. And that's sort of on the spot feedback. It just makes life much easier.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I'll give you a couple. One would probably be, and I tell this to a lot of young people at Wellington, is to don't sweat the small things, that there are times in my career where I worried about titles. As I said, I started as an administrative assistant. So you can imagine I was probably not paid well for many years. I was ramping at a point in time where I was probably could have earned more money. So I worried about things like offices and titles. That was probably a lot of negative energy that was unnecessary. In retrospect, I didn't need to worry about that. One of my colleagues, I remember one of the first people I worked with took me out to lunch, and I felt like I needed to have my own industry. And he kind of set me straight and said, you were crazy. You're working in healthcare, one of the best industries, one of the best investors in the world. So again, don't worry about the small stuff. Just worry about learning and growing.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“She probably ever expected, but it was reaching further than where they started out. And that, I think I will always be grateful for my parents.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“My parents were Irish immigrants. My mother came when she was a young teenager, my father came when he was nineteen. And we led a very modest life. I never knew. I never knew it was a modest life at the time. So I guess I take away that I grew up in a very loving caring home. The other thing I would say is that my father never went to school beyond his early teenage years, but he was a lifelong learner. As a teenager, he would be watching PBS and we would be frustrated because it was one TV and we wanted to watch. So I would say he read National Geographic religiously for 70 years and he watched PBS and he was the best terrorist pursuit player in our family. So that curiosity and learning about the world when I think about my father, I think about that. And I think from my mother, she allowed an atmosphere where we could get ahead. And I think we've done better, my siblings and I than.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It would be too specific in healthcare to go through all the things that I are must reads for me, but it's certain analysts and certain sell-side firms that I would always read, certain publications like New England Journal of Medicine might be one weekly that you always read to see what's happening”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's not part of my daily routine of reading. It's part of my yearly routine of reading where I might on vacations in the summer points in time when it's more quiet. I wish it was more part of my daily reading”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I'm very lucky when I read outside of work, I love to read fiction novels, and I'm lucky that I have friends in publishing. And there's a group of us that share, and I will say I'm the recipient of great books to read over the years. I tend to like fiction novels that also teach you about the world. So they're set in a part of the time or a part of the world where you're learning about the culture, but they're fiction.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“People are very short term. So it's not a pet peeve in the sense that I can ignore most of that short termism. I mean, that's, I think, one of our competitive advantages that we can elongate our cycle. But every once in a while, the short-termism of investment narratives can get under your skin.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“10 years ago. And in fact, I've skied with the same instructor for 10 years. I've progressed a lot. But there was a lot of fear. I remember him asking me, what do you do in your day job? He bought me this book called Fear. And I'm like, I don't actually have much fear in my day job.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“One of the things I started to do in the last decade is learn to ski. So our family goes skiing every weekend in the winter. It's been a great time for us to be together as a family, and I will say that I did not know how to ski.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's only important to the extent that we attract, retain talent. So growth for the sake of growth is not critical for us, but growth for the sake of how we have a lot of new investors that we've hired in Asia. What's their career path and how do we get more assets for them is one example. So like I said, one of the things that Wellington does, I think, that does a really good job of is thinking very strategically about capacity. So we're not asset gatherers. Back to the fact that we believe the only way we're going to serve our clients going forward is if we can produce differential returns, either alpha or a solution to clients. And capacity analysis is very important for that. But hopefully we have a winning model where we continue to attract really good talent in areas that we're not in, and so that will be one area of growth for us.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I guess I'm a believer that differentiated investment insights about the world will still matter, but you're going to need to invest in IT and you're going to need to invest in science to augment that art. And so how do mid-sized companies continue to make those investments? I know they're really important investments for us. So being scale could be more important going forward.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think you are definitely seeing that if you talk to some of our small cap investors that the companies definitely don't go public in the small cap range as much as they used to in the past. I think it really depends on what the capital market. So right now you have a preponderance of capital available to companies that are available in private. So as long as that continues, then I think you'll continue to see many companies staying private longer if that dries up you might see more companies needing to come public. So when I think about healthcare as a microcosm, you know, there was a period of time where the public markets weren't open for a decade and a lot of companies had to get private capital. And now the public markets are open. And so even though they're getting private capital, they're coming in a much earlier stage in other sectors. So I think it really depends on the markets.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“That private sort of the preponderance, particularly in the US, of more and more companies staying private longer and creating kind of a shallower pool for the public markets. Where do you think that goes?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“That have new skill sets. Continuing to look for areas of investing that we're not in, I think we will be maybe third. We will have more of our assets in privates. So that's an area we have been investing in now for a couple of years. And so there's an effort like where is our competitive edge and where could we continue to expand our private efforts?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think Wellington ten years from now will be more global. So, when you think about where we have market share and where we have opportunity to grow, we have a lot of opportunity still to grow in managing assets both for clients outside the US and investing in asset classes outside the US. So EMI and APAC, our market shares of the markets is lower than it is in the US. I would suspect and hope and when we think about what is our most important job of the CEO and the line managers and the managing partners, it's to allocate capital to where we think the business is going. And that will be more global, more in the region, more in Asia and in parts of Europe. So that would be number one. I think we will have more alternative skills. So if you think about specific skill sets, we will have more investors that have long shorts skill sets. And that could be investors we have now that we train and also new skill sets that we bring in. We've been a very dynamic company in terms of bringing people in.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Probably the tension would be, the most would be talent development, like who should be promoted? How should they be compensated? And that's being pushed out much more locally now and the regions have a lot of input. That would be one. Number two would probably be fees. Like how do you do fees in your local region? So we're working on strategies to put some of that decision making in the regions. So those would be the two that would stand out. But we're going to be on a journey to what are the best practices, what are all the decisions we make. And it's not going to be those two. It's going to be many decisions. And how do we do more of it in 2022 in London and in Hong Kong and Singapore and Tokyo than we do now in 2018? That's one of our most important things we need to get right in the next 10 years.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It's about how you push decisions to local how do you not Americanize someone in China or Japan and you let their local culture come out so how do you have best practices and so we're on that journey to figure that out”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Of external research on that, what are the best global companies? One of the things the group who was leading that effort came to the researchers and said, who are your best global companies?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're obviously larger and much more complex. We're over a trillion dollars. When I started, we were fifty billion. So the complexity of our business is much greater. So I would say some of the things we've done in the last few years is how do we operate as a trillion dollar global asset manager in 2018 that's different than 10 years ago and different from 20 years ago? And so I think we've been very deliberate about that. So how are we structured? We're spending a lot of time about global management. So I think now we have a lot more local managers. So almost every employee in our EMA and APAC and other offices are managed by someone locally in their office. We think that's going to be critical going forward. How decisions get made in other regions rather than in the Boston office? That's something we're early in our development of really pushing decision making out to the regions. So that is something we're spending time on. And we did quite a bit.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“All those needs I think it really depends on how senior you are. So there's three colleagues on the healthcare team that spend the vast majority of time with our healthcare clients. But then many of our clients want to know the team. So when I think back to my career back in the 1990s, I used to go to every client meeting or many client meetings with Ed, and that was really important part of my development to really understand that this is real money. clients have real and different needs. And so I really feel strongly that having that early in our emerging investors profile that they know what the clients want. And we've really encouraged people on our team anyway to interact with clients as much as possible too.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Offices around the world. So we have local external business people interacting with our clients in those regions to figure out what needs do they have and how can we help them.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“We have a few groups here at Wellington. One is investment products and services group. They're sort of in between the external part of the business and the investors. So they work really closely with us in terms of product positioning, in terms of product integrity and being a liaison between the investors and the external-facing relationship managers and business developers. And there's a lot of coordination. So one of the things we say about Wellington is that our core thing that we do is manage money for clients and then how that gets into client portfolios and all the different channels. We are very global. We have clients all over the world and almost every channel. And so how that gets there then is we have business functions all over the world. So our business platform began to globalize 10 years before our investment platform. So our business platform was started in about 1996. We started globalizing and we have 50.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Nothing comes right to mind. I'm a long-term investor. I take things with a long-term view, and I think we've evolved as a company and we probably haven't gotten into every business that has grown, obviously. But I wouldn't say there have been major mistakes that have pivoted us in the wrong way. So clearly there were parts of the markets we could have invested in more aggressively or parts of the market where others have grown and we haven't participated. Those would probably be the areas that we haven't participated in.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I guess we don't spend a lot of time looking at how our competitors are positioned. We try to be extremely independent. But saying that what we do look at is what are inflows into sector funds, how many IPOs are happening, what's the inflows into the passive funds, and those could be indicators of things getting overheated or sentiment being really low. So those are some of the things we look at in the marketplace.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“The short portfolio is an extension of our research. So if we're going to own healthcare, we're going to own all companies and we're going to have some very high conviction longs where we think there's a lot of change happening. And that change happening could be detrimental to some companies. So I would say the short portfolio is a combination of companies we think are disadvantaged or things are changing or the drug doesn't work. We don't believe in the science. There also is a combination of where do we think the cycle is in healthcare investing. So in healthcare specifically, we're not investing in a multi-sector or multi-industry that we don't have as many tools. So the most important tools we have is what is our gross, what is our net exposure? Do we go big cap or small cap? And those are really critical to figuring out what our positioning will be.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“What that is worth. So there's a long time before this drug makes it to the market and if it makes it to the market, it's going to be worth this. And sometimes you can get ahead of itself. So being very disciplined about scaling back positions, even if you still like them, adding to positions, leaning into liquidity are all the things that bring that deep research into a portfolio.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Again, it's based on conviction. I invest in an area that is very volatile, and it's also an area that the insights happen over a very long period of time. And so I guess my rules of thumb would be I want to invest in an insight that's evolving over time because you're going through, let's say, a phase two drug that's going to take five or six years for it to make it to the market. How does your view evolve over time? And I use position sizing is a really a critical skill to be able to know my conviction level. What I don't do necessarily is say, well, I think there's a 50% chance this is going to work because otherwise you would never invest in anything. But I'd rather say I think this is going to work, but what is my conviction level? Your conviction level could be really high or it can be good, but maybe not quite as high. And you calibrate that over time. Also, like one of the things I do in my process is knowing at any point in time.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, I might be able to do it in a big company. If you go back over a decade, if implementing a bet on diabetes, you could do it with big companies, you could do it with small companies that had partnerships. So there's a lot of change happening in diabetes a decade ago and how that was implemented in the portfolios. So that's my favorite way of investing, and that doesn't always happen, but it generally happens that if you have an insight into how something's changing, you can implement it in a way that allows you to actually have a bigger bet without undue risk.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, when I think about how I'm investing, because I run both Long Only and Long Short Portfolios, in aggregate it's again beginning back to where is healthcare going to be in five to eight years. And so that's where I spend most of my time. What insights do I have about where healthcare is going? Then you have to bring it down to valuation. What are the valuations of the stocks? And then how do you implement that in the portfolios? So I would say the themes we have or the insights we have are implemented across our portfolios and sometimes they're implemented with very large cap companies and sometimes they're implemented with sort of the full basket of small and micro cap companies. I'll stay with the long side first. So how do you have an insight in how do you construct that in portfolios? And sometimes you construct that with one stock because you feel like you have that stock is going to be the main beneficiary of that. Personally love when I can have an insight and I can do it in four or five or six stocks.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Just go back to focusing on the healthcare side. How do you think about portfolio construction and particularly there are some long only, but then hedge fund suffer gets a little bit more variables to play with”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“What is your process for investing? And I think we've spent a large amount of our time helping that. And the investors who really know themselves as investors both have a really strong philosophy and a really strong process tend to be our best investors. So that has been a great amount of time and effort and that will be continual.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think at Wellington, we bring in outside speakers to think about that. So I would say there are definitely resources over time. We have a number of leadership and development programs that we've been working on, including something called the portfolio management development program and about 80 investors have gone through that program now. We have a leadership excellence program, again, which involves both business people and investors. How do you become a leader? Like being a leader and being an investor has a lot of overlap. And I think this investment science will bring that to a new level. But I think most importantly over the last decade, all investors go through what's called philosophy and process. And so we don't have one way of this behavioral science, one way of thinking, but we have this process now where, and you have to go through it many times over time.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Science as much, and the goal would be to have that group will do trading analytics, will do risk analysis of portfolios, is doing big data and how do you incorporate big data into your investment process. And I think what's unique, and if we can get that right will be pretty powerful, how do you do investment coaching? Even investors that have been 10, 20, 30 years, how do you continue to become a better investor over time? So we have a group of people that were existing at Wellington. We have aggressive hiring program. And so we'll see how that evolves over time. I'm pretty enthusiastic that it could make a difference.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“So one of our big areas of investment is in we have a new group form or group coming together called investment science. And so that's a big area of investment for Wellington as a whole. And the goal of that group would be when I think about all of those 55 platforms and you think about who uses science in their investment, the balance between the art of investing and the science of investing. There are going to be some groups that now heavily rely on science, our quonk group, some of our quant-based fixed income investors, there are even some equity investors who have a heavily science-driven screening process. And then they're going to be some investors that don't use science at all. And so the goal of our investment science group over the next few years would be to elevate that for everyone. And so how do I use science in my process? So I'm pretty excited about that being, I'm probably on the end of the curve that doesn't use.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It goes down to every area of investing could be different, right? It's really dependent on the team. So when you think about healthcare, for example, you know, a decade ago we had fewer assets, but the market changed. The number of companies in the market changed. So we have to be evolving and dynamic in that process. If you think about our global fixed income, that's a larger team because you're trying to have specialists take risk in very specialized areas. So I think every area of investing is a different model. How we do Japan, how we do China is very dependent on the talent we have and how they want to form teams and what the opportunity said is. And so I guess we're very flexible.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think it goes back to our culture. So having that culture of investment excellence, I think the collaborative ecosystem where you are able to gain insights from your credit colleagues or your fixed income colleagues that are differentiated in the marketplace. I think it all goes back to the partnership model, the ownership model, and we're doing it at scale now. It's very unusual to have a trillion dollar asset manager that's also privately owned. There aren't that many of us. That's one of my core responsibilities is how do we make sure that happens and it's enduring for the next 50 years.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“And believing that, as you do, with broad based portfolios, almost lends itself if you can succeed to saying what should be the place for passive. I mean, you can broadly say, well, passive is helpful for markets Wellington manages a fairly sizable amount of assets and has done it very well. Why is it that Wellington's able to do this when the data and the statistics say well, all active managers together by definition can't beat the market metaphys.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“If you listen to Vanguard and what their philosophy is, they're not a passive company. Their philosophy is to be a low cost both on the active side and the passive side. And there's a place for both passive and a place for active. I think there's a place for active if you can generate alpha. So when we think about Wellington, it's much more competitive. We need to be able to over an investment cycle deliver alpha for clients. So that's how I think about it for us. Like how can we be successful as being an active manager and not in the passive world? One, how can we be successful over the next 10 or 20 years for our clients? It is providing solutions. It's providing a return stream that the clients want and it's providing differentiated returns relative to what they can buy in the passive space. So that's what we need to do. And if we can't deliver that, that would be a disappointment. And that's not our strategy is to everything we're working towards is to be able to deliver that for clients over and over again.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“That's okay. So you have to make sure you're still doing your day job. And the thing about it is I love both parts of the job. So it makes it easy to do both.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Being a managing partner at firm levels, firm issues. But like you said, at different times of the year, there's very little managing partner things that I have to do. And sometimes of the year, there's more. And so you have to just be disciplined and organized. And, you know, I'm going to be working a lot over the next couple of months, and that's okay.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, first of all, being a managing partner and being a portfolio manager requires a lot of organizational skills. So that's one of the skills I have is that I guess one of my super skills is being very organized. The other thing about being an investor and being a managing partner is that I have very low turnover. So my turnover and my portfolios tends to be 15 to 30 percent. So I'm not trading every day. And that's been very consistent throughout my career. Now what I need to do for my clients on the healthcare side is making sure that I am reading a lot. I have dedicated times or I'm reading and thinking and putting mosaics together and working with the team. I rely heavily on the healthcare team. We have a number of people who are coming up the curve and taking on more responsibility. So that's a critical part of my job. And I would say 75% of my job is healthcare and 25% is”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“It goes back to the fact that Wellington is not a star culture. So that goes back to who we hire if someone needs to be a star, they're not going to be a good fit here. So I think that's number one that we have a lot of people who are humble and love investing. And we want to continue to create a culture where a new person who's 25 years old can challenge someone who's been here for 30 to 40 years. And that's something we strive toward. So we don't have a star culture. So that's probably number one. Number two, again, it's back to the partnership economics and how the profits are allocated by the managing partners and that trust that will be very fair in that process. I think also reduces that conflict.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“want to turn to some of these sort of interesting issues of product development over time. You mentioned the formation of hedge funds in the 90s. And not a lot of traditional long-only firms have done that successfully, and part of it is because the differential compensation structure and the potential for stardom as a result from my old business that Wellington's done a phenomenal job of building some outstanding hedge fund products. How did you make the business work in such a way that didn't jeopardize the culture of the firm?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“There was some future economics for retired partners. I mean, the formula of that is why it makes it so easy for the partners to elect new partners and partners to leave. So going back to 1979, when the partnership structure was started, it was a brilliant partnership structure.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“We have three mansion partners, so I'm one of those managing partners, and our most important duties in that managing partner role is to nominate new partners, that the partners elect. So the partners are very involved, appoint managing directors, which is a step before a partner, determine a managing director bonus, which is sharing the part of the profits of the firm and then allocating the profits of the firm to each partner every year. The partnership has to have a significant amount of trust in us. We have a lot of information to try to determine what is the fair allocation of profits over time. What is not fair to say is that people that have been here a long time, their impact is lower because some people continue to accelerate their impact till the very end. And there are some incentives to continue the partnership that make that happen. So I think the philosophy of the partnership is we want the pie to grow.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“work across the partners. So if it's merit-based, there's an implication that as you get maybe on in your career, maybe you don't have as much value as someone who's coming up or now running. What are some of the mechanics of how the partnership structure works for everybody?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Everything starts with our business model, our ownership model, which is a private partnership. So we are very fortunate that in 1979, the founding partners took the company private and they created a structure that is enduring still to this day. And the partnership structure, it's a merit-based structure, so it's not a tenure-based partnership structure. So that, again, is back to the culture. We are humanistic long-term caring culture with high expectations.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“Or do they want to be part of the ecosystem? So the most successful people that come in really, they will say we're much more collaborative than we say we are than the peers in the interviews. Our culture is stronger than appears in the interviews. And they often want to spend the rest of their careers here.”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source
“We do a better job today of different people trying to get different aspects. So you're not asking the same questions. So different people are assigned different aspects of that mosaic of a person. But I think the key asset, one, are they a good business person or are they a good investor? Do we think they have investment skill number one, right? Number two, will they be additive and help us evolve our culture? And I think the key to that is do they like to collaborate? So you can find that out through those 20 or 30 interviews. Do they want to come in? I remember when we were hiring our first portfolio manager in London and I was involved in maybe 20 candidate interviews at the time. Other colleagues did 100. I think we interviewed 150 to hire our first portfolio manager in London, which was critical. Like that hire was critical for the equity platform in London. And you could tell when you asked those questions, do they want to just come in and do their own?”
2019-01-14 · Capital Allocators · Jean Hynes – Inside Wellington Management (Capital Allocators, EP.82) · IDENTIFIED FROM THE TRANSCRIPT · source