Louise Watson: Hello and welcome to Navigating the Noise, a podcast by Natixis Investment Managers, where we bring you insights from our global collective of experts to help you make better investment decisions. I'm Louise Watson, and today I'm joined by Hollie Briggs from Loomis Sayles. Hollie is the Head of Global Product Management for Loomis Sayles' Growth Equity Strategies team. She's based in Boston, where she works closely with Aziz Hamzaogullari, and the rest of the investment team, but also travels a lot to meet up with clients and investors all over the world.
Hollie: Thank you, Louise.
Louise: I understand you're quite an adventurer, Hollie can you tell us a bit more about some of your other adventures that you've been on? I remember your story about an epic canoe trip.
Hollie: Well, thank you, the canoe trip you're referring to is when my husband and I, and our yellow Labrador Retriever, paddled the length of the Missouri River, which starts on the eastern slope of the Rockies in Montana and goes all the way over to the confluence with the Mississippi in St. Louis, Missouri. It took us about three months. If I ever write a book about that, it would be titled "87 Days, Nine Nights in a Bed." We paddled for 87 days, finding a place to camp each night, and just saw the glorious countryside throughout the Missouri River. We were actually retracing part of the trip of the Lewis and Clark Adventure. At its 200th anniversary, we did it in 2003, and they had done it in 1803.
Louise: Wow, that is spectacular! That all that time has passed, and you're still able to retrace those steps in such beautiful countryside, I would love to do that one day. But let's get into investing and find out a bit more about what's been happening with the team. We had Aziz on this podcast last year, and Aziz, as we all know, is the founder, Chief Investment Officer, and PM of the Growth Equity Strategies team that you're part of. Your team has had tremendous success since it started back in 2006 and now manages around US $90 billion in assets. Can you tell us what it's like working as part of this team and how has it changed over the years?
Hollie: You know, it's really been, I'd have to say, an honour to be on this team. I joined the team myself in 2008. The team was founded in 2006, so we've been together for almost 19 years now. As you know, Aziz is a long-term investor, and he's a long-term investor because he's a long-term thinker. That includes the vision he has for our team. We really demand no less of ourselves than what we require of the high-quality companies in which we invest. We have a cohesive team, we've been together for nearly nineteen years, and we have a strong track record of alpha generation, which is a difficult-to-replicate competitive advantage. That's the first thing we're looking for in companies that we want to invest in.
So when we're looking for team members and new analysts, we're first looking for people who are passionate about investing. We want individuals who are independent thinkers. I mean, to generate alpha, you need a differentiated point of view, so you need to be an independent thinker, not someone who just goes with the herd mentality. Last, but not least, we also want people who are comfortable working as a team. One of the ways we guard against different behavioural biases, like confirmation bias, is to take our research work and vet it fully through the entire team. We really try to prove or disprove the alpha thesis, looking from the very beginning at what could go wrong and being just as concerned with downside risks.
Trying to disprove a thesis is really like a scientific approach. I would also say that we deeply respect one another, and we are each committed to the fiduciary duty to generate long-term shareholder value for our investors. Our culture has been very consistent over the years, and it seems to be working. Since 2006, we've had no departures from our team.
Louise: I think that's an incredible statistic and so rare in our industry these days. You certainly need that deep respect and cohesion to weather the volatility and the many cycles over those 19 years. Markets are volatile at the moment, and we've seen drops in U.S. markets recently. How does the team view this latest bout of volatility versus volatile periods in the past?
Hollie: You know, markets are always changing, right? As much as investors may try to explain and forecast market volatility, it's really unpredictable. So our approach today, as in other times in the past, is to look through the current market volatility. We ask ourselves whether or not there have been any changes to the long-term investment thesis of any company in our portfolio, and then we proceed rationally.
So I think it really bears repeating that markets are volatile. It's inevitable, but it's unpredictable.