3 minute read
PROFILE: Nancy Hossack Portfolio Manager, Foord Asset Management
How did you get involved in financial services – was it something you always wanted to do?
My father was a portfolio manager, so I grew up talking about stock markets at the dinner table. He was passionate about his job and made it sound interesting. When I was about 16 years old, I decided to also pursue a career in finance. I reluctantly followed my dad’s recommendation to qualify as a chartered accountant. I didn’t thank him at the time, but I understood the value of it later and I am very grateful for my accounting training now.
I completed my articles outside of the profession at Investec Bank, which was a wonderful place to work, and then headed to Investec Asset Management (now Ninety One). I loved the job from day one, although I do remember how stressful it was being a junior analyst thrown in the deep end. I would phone my dad to ask him the questions that I thought might be too stupid to ask of my colleagues.
What was your first investment – and do you still have it?
I think the first stock I bought for myself was building materials retailer Cashbuild. I loved the simplicity of the business and the down-to-earth management team. It was also one of the first stocks I covered. I sold it a few years later because I thought the valuation had become quite stretched.
What have been your best – and worst – financial moments?
I am not sure there are any actual moments that jump to mind but there are two parts of the job that I really love. The first is finding an angle on an investment that no one else knows about, some insight that the market is missing, which means it is mispricing the security. I imagine it is how bloodhounds feel when they pick up a scent. The second part is on those turning point days, where a big bull market finally rolls over and suddenly things start moving quickly. That is when money managers are truly tested.
The worst part has been dealing with some of the corruption that has infiltrated SA corporates in recent years.
What’s the best book on investing that you’ve ever read, and why would you recommend it to others?
I like Hedge Fund Market Wizards by Jack D Schwager – each chapter covers a different investor and how they invest. It illustrates that there are so many ways to make money in markets. I think consultants and investors are too obsessed with boxing managers into an investing style. As Chris Rock says, “Anyone who makes up their mind about an issue, before they hear the issue, is a fool.”
What’s your view on Bitcoin and other cryptocurrencies?
I’m cautious – it is very early days for cryptos. The short history of crypto has so far been characterised by an enormous amount of change and volatility that will continue. For now, I put cryptocurrencies into the ‘speculative’ category of securities. As an investor, you try to assess the fundamental value of what you are buying, something you can hang your hat on. For a company,this would be its underlying cashflows. Trying to value cryptocurrencies is a lot more fraught. Even commodities are easier as they have long-term price histories that allow you to assess whether they are cheap or expensive relative to history. Young people ask about crypto a lot – my response is it’s fine if you want to put some money into crypto, but make sure it’s not more than you can afford to lose.
