Traders Magazine spoke with Louis de Kock, Head of Trading at J O Hambro Capital Management (JOHCM), which won Best Boutique Trading Desk at the 2023 Markets Choice Awards.

Please tell us about J O Hambro Capital Management and your trading desk.

At J O Hambro Capital Management (JOHCM), our global trading desk operates 23 hours a day to cover relevant markets across the world. Our team comprises two traders in Singapore, five in London, and two in New York. As the head of the team, I have had the privilege of building it myself, starting from a pan-European focused business in London and expanding to Singapore and the US, where we opened in Boston. We understand that regional cultural differences are critical in running an efficient global desk and embrace diversity and inclusion as important factors in our team’s success.

We are currently going through an exciting acquisition by Perpetual, which will transform the business into a proper global house of boutiques. We are looking forward to the next growth phase with new initiatives and synergies.

What trends do you see around buy-side equities trading?

At JOHCM, we see ourselves as an extension of the fund manager teams and, therefore, an alpha-generating part of the business working very closely with them. While automation is a hot topic in the industry, we recognize that, given our unique workflow, it is not currently appropriate for us. With the ever-changing market dynamics and fluctuating volatility, we see a greater need for dynamic communication and agile decision-making. We believe that automation is something to embrace as we grow assets under management (AUM).

Is there anything out there that market participants are not paying enough attention to? Or that they’re paying too much attention to?

We believe that the sheer volume of regulation in the industry can sometimes distract market participants from the bigger picture. It is essential that a trading team understands and implements regulations to enhance the business and not fall short to the detriment of the company or investment teams. We find that forums like the International Trade Forum and the FIX Conference are incredibly beneficial to our trading desk. They offer us the opportunity to better understand our peers and test our consistency with market practice. These forums also enable us to assemble 150 heads of desk in a single location to discuss pressing issues and potential changes in our marketplace. It is a great opportunity for us to confirm what we are doing is correct and ensure we are not missing anything crucial and potentially beneficial.

What are your current initiatives at JOHCM and expectations for the future?

At JOHCM, we are proud of our recent wins of both the Fund Manager of the Year (Morningstar’s ‘Best Asset Manager in the UK 2023) and Boutique Trading Desk of the Year Awards (Markets Media, 2023). Our diverse team works as one to achieve our success, and we are constantly striving to integrate businesses, discover all potential synergies, and move forward as a bigger, stronger, and more dynamic team. We believe in continuous improvement and are always seeking new initiatives that will drive growth and success in the future.