Collaboration admin 06.02.2022
COLLABORATION BY DESIGN
Seeking to improve investment
decisions by creating connections.

We decided long ago that an open, collaborative culture was theright choice for our firm and our clients. By actively sharing research and challenging one another’s views and potential blind spots, our investors create a diverse marketplace of ideas. They decide independently how to draw on it to help sharpen their own portfolio decisions and manage risk. 

 

To support this model, we have a four-part framework…

How we support collaboration at DIF

1

Hire collaborative investors

A belief in collaboration won’t mean much if we can’t find the right investors to execute on it.

2

Incentivize collaboration

We don’t just encourage investor interaction, we recognize and reward it.

3

Foster a silo-free environment

We’ve deliberately structured our firm in ways that support an integrated, global dialogue.

4

CONTINUALLY INNOVATE

We scrutinize our practices to improve engagement and diversity of thought

1. HIRE COLLABORATIVE INVESTORS

A belief in collaboration won't mean much if we can't find the right investors to execute on it

We spend a great deal of time searching for and developing investment talent. The hiring process (20+ interviews in many cases) is focused not just on knowledge, skill, and experience, but also on intangibles such as humility, collegiality, open-mindedness, and a desire for continuous learning. 

Seeking investors open to other views  Candidates see the emphasis on collaboration right from the start.   For example, we might ask an interviewee who covered a retail company at another firm how their views were shaped by colleagues on the firm’s  real estate team: “What’s the state of the retail company’s real estate?   Your organization has analysts who follow REITs. What do they think?”   If the answers signal a lack of awareness and drive to seek out alternate perspectives, the conversation may stop right there.

Collaboration
WHERE COLLABORATION BEGINS EACH DAY
New joiners at our firm first see collaboration in action at our Morning Meeting, a tradition dating to 1958, when our founders gathered daily to discuss topical investment issues. While the meeting has since grown and gone global, the purpose remains the same:
  • To exchange investment ideas
  • To provide insights behind the day’s headlines
  • To learn from and challenge one another
  • To say “good morning” and spend time together

2. INCENTIVIZE COLLABORATION

We don't just encourage investor interaction, we recognize and reward it.

An important structural support of our collaborative environment is our performance review and compensation process

collaboration

Knowledge sharing across geographies

Investors are evaluated on their willingness and ability to share insights, incorporate other views into client portfolios, and mentor less-experienced investors.

At year’s end, investors are asked to list the five individuals outside of their immediate team who had the most positive impact on their performance. This feedback is part of a “mosaic” that impacts compensation

Our firm’s private partnership structure also provides incentive to work unselfishly and help others succeed: Election to the partnership requires votes from 75% of the 150+ existing partners

3. FOSTER A SILO-FREE ENVIRONMENT

We've deliberately structured our firm in ways that support an integrated, global dialogue.
A single firmwide P&L
A single firmwide P&L
Precludes the need to compete internally for resources or revenue allocation, and allows the focus to remain on doing our collective best for clients.
Technology infrastructure
Technology infrastructure
Helps to eliminate geographic and time-zone impediments to collaboration — like an always-on video link between our Boston and London trading floors
Data systems
Data systems
Provide unfettered access to research, analyst ratings and recommendations, portfolio position sizes, and daily trades
Community of boutiques investment model
Community of boutiques investment model
Enhances collaborative practices by bringing equity, fixed income, and multi-asset teams together under a single management framework.
Centralized research
Centralized research
Facilitates cross-asset research and diversity of thought, with global industry, macro, fixed income credit, technical, and ESG research teams all under one roof
Multiple forums
Multiple forums
Create opportunities for investors around our global offices to engage with one another, from our Fixed Income Morning Meeting to our Eurasia Morning Meeting to our investor “Lessons Learned” sessions

4. CONTINUALLY INNOVATE

We scrutinize our practices to improve engagement and diversity of thought

Here are some examples:

PERPETUATING A CULTURE OF COLLABORATION

Why do we think this framework for collaboration is effective?

We have high retention rates among our investors, and when we ask them what they think is different here and why they stay, they will often answer that the level of collaboration enables them to “connect the dots” and develop more complete investment ideas than they could elsewhere.  

Low turnover in our investment ranks allows for strong relationships and the trust that is essential to a collaborative process. We work constantly to nurture this culture and to find new ways to enable the global investment dialogue

Let's work together to build something great

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