Executive Exchange: 12 questions with Andrew Hendry
(This is a new monthly feature from AsianInvestor, where we get up close and personal with a C-suite executive from Asia's investment management industry. This feature hopes to offer a glimpse into the personality behind the professional.)
NAME: Andrew Hendry
TITLE: Asia CEO
COMPANY: Janus Henderson Investors
Janus Henderson
With over 26 years of experience in the financial industry, Andrew Hendry's leadership at Janus Henderson shows a commitment and dedication to growth, particularly in the dynamic markets of Asia.
AsianInvestor caught up with the well-known executive to ask him about his career and personal influences, the investment principles he lives by and some light-hearted questions.
If you could invest in the success of any movie franchise, which would it be and why?
I'd invest in [the] Harry Potter [franchise] - timeless and universal.
What's one commonly accepted piece of investment wisdom you wholeheartedly disagree with?
“Low cost passive is best for clients.”
Given the current narrative in mainstream financial media, I’m likely being contrarian by championing active management.
The critique around its cost and performance over the past decade in the era of free money may have technically, held some water then, but no longer applies now that we have returned to a normal interest rate environment.
In this climate, the ability to navigate through market volatility, recognise undervalued stocks, and make tactical adjustments will be prized.
In environments of market dislocation or during periods of economic uncertainty, an adept active manager can safeguard returns in a way that a passive index fund cannot.
Active management isn't just about beating the market; it's about understanding and actively responding to it, offering potential for risk-adjusted returns that index trackers just cannot achieve.
2023 has demonstrated how active managers help investors beat the market.
In the tech sector, what would you make a bigger bet on in the next five years: artificial intelligence (AI), blockchain, or renewable energy?
AI's potential to revolutionise industries such as healthcare, finance, and beyond is unmatched, offering efficiency improvements, automation, and deep insights.
As AI evolves, its integration into daily life and business will create significant economic and innovative opportunities, marking a foundational shift in our interaction with technology.
On a scale of "savings account" to "cryptocurrency", how risky are your personal investment strategies?
My investments are for retirement and for my two girls – so with this multi-decade time horizon which goes beyond my lifetime I am very comfortable with volatility.
The true risk in the future is not having taken enough risk at the start of the portfolio. A feeling of safety is that the investments have grown at a rate well above inflation.
If you could go back in time and invest in any company in its start-up phase, which one would it be?
There are so many choices when looking at missed opportunities, but investing in Amazon during its startup phase would have been a dream.
Its revolutionary impact on retail and technology represents a once-in-a-generation opportunity.
If I had invested in the stock back when it first listed, and importantly, had held it through its ups and down until today, imagine the returns.
This is why I firmly believe in the view that the second best time to invest is now, the best time to invest was yesterday.
Can you recall a time when your gut feeling about an investment conflicated with the data, and what did you do?
There have been moments of conflict, but I prioritise data-driven decisions.
Data helps provide a more precise, more objective perspective and I think relying too much on human emotion/feelings result in more negative investment outcomes. So whenever I have a conflict internally I will talk with colleagues -- two or three heads are better than one!
What industry do you predict the next billion-dollar 'unicorn' startup will emerge from?
I think the next billion-dollar unicorn could emerge from the health tech sector, especially in personalised medicine and AI-driven diagnostics.
What's the most valuable lesson you have learnt from an investment that didnt pan out?
The most valuable lesson learned is the importance of emotional detachment. It's crucial to assess failures objectively and learn from them without letting emotions cloud judgment.
Through these mistakes I have adjusted my approach to position sizing and portfolio trimming- the most common failure I have had is not letting my winners run and keeping my losers.
Which investment figure do you consider most influential in your career? (It doesn't have to be someone you know or work with currently)
Myron Scholes has been profoundly influential to me. His work on the Black-Scholes model revolutionised the way we understand options pricing and financial markets' behavior.
His innovative approach to risk management and valuation has provided me with a solid foundation for making informed investment decisions, emphasising the importance of mathematical precision and economic theory in finance.
Today, I have the privilege of calling him ‘colleague’, as he continues to manage strategies mainly for institutional clients here at Janus Henderson. Additionally, Myron has some great tips on efficient travelling and staying active.
If the stock market had a theme song, what would it be?
"Love Rollercoaster" by Ohio Players, but the Red Hot Chili Peppers version. It captures the highs and lows, excitement, and unpredictability of financial markets!
If you had to equate your investment strategy to a game, which would it be and why?
Not really a game, but I enjoy woodworking in my spare time. The careful planning, precise measurements, and attention to detail required in carpentry ie- measure twice, cut once, are qualities that lend themselves well to working in asset management.
If a movie was made about your life as an investment executive, who would you want to play you and why?
Maybe Tom Hanks would be a good choice. His ability to convey authenticity and gravitas could convincingly capture the trials and tribulations of being in asset management!