PROFILE: EVAN WALKER PORTFOLIO MANAGER, 36ONE ASSET MANAGEMENT

EVAN WALKER PORTFOLIO MANAGER, 36ONE ASSET MANAGEMENT

How did you get involved in financial services – was it something you always wanted to do? After completing an MBA at Wits Business School in 1999, I knew I wanted a position in financial services with a more specific focus on markets and equities. I was fortunate to find employment at Standard Equities as a retail analyst where I was employed for seven years, until joining RMB Asset Management in 2007 (later to become Momentum Asset Management). I managed the Momentum Small/Mid Cap Fund for six years until Joining 36ONE Asset Management in 2012. I grew the small cap assets at RMB/Momentum from R300m to R4bn over the six-year period and received three Ranging Bull Awards. I’ve been at 36ONE for eight years now, winning one Raging Bull Award for Best Equity Fund in 2015.

What was your first investment – and do you still have it? My first investment was shares in Bidvest priced at R30 – and yes, I still have the share, which is now Bidcorp and Bidvest, worth approximately R400. I liked the diversification of the investment and the entrepreneurial flair of Brian Joffe.

What have been your best – and worst – financial moments? The best moment for me was two years after the 2008 financial crisis, i.e. 2010, as the Momentum Small/Mid Cap Fund was not only the bestperforming unit trust in its category but the best-performing unit trust in SA over three years by a substantial margin. The worst moment for me was the collapse of Steinhoff in December 2017. While my fund had a very small position (2%), the destruction of pension value driven by greed sickened me. I think we all learned valuable lessons from the loss.

I ENCOURAGE THEM TO PICK OUT MANAGERS WHO HAVE SHOWN THEIR ABILITY TO BOTH PROTECT CAPITAL AND GROW VALUE OVER TIME

What do you tell investors who are worried about their investments due to SA’s current economic environment and COVID-19? I encourage them to pick out managers who have shown their ability to both protect capital and grow value over time. The 36ONE BCI Equity Fund, which I manage, is currently 30% ahead of the market over one year and compounded positive returns since inception. I also encourage people to try to save harder and diversify their investments further with a focus on always looking for quality mangers/investments and steering clear of complex investment structures that are hard to understand; simple is normally better and more trustworthy.

What’s the best book on investing that you’ve ever read – and why would you recommend it to others? I don’t read books on investing! Investing is a product of buying good companies, so I rather read about how people made good companies and what gave them the edge in doing so – and what makes a good business or industry. There are many books that combine the history of businesses and the people responsible into more light-hearted reading. One such book is Crazy Rich by Jerry Oppenheimer, which is a great story of the Johnson & Johnson dynasty. After reading this book, businesses of today in 2020 take on a different meaning. I love reading and understanding the origins of companies, as this tends to give investments way more meaning than just the share price on a daily basis.