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Challenging the Herd Mentality
The LC Groups Alistair Cooper shares his strategy on how to survive and flourish during periods of equity market volatility.
By: L C Group
After years of industry experience globally, specializing in active growth sectors such as technology Cooper has refined a recipe for potential success that consist of three main factors. Long-term thinking, working with a team of solipsistic people who do not think like the crowd and making a profit from the idiosyncrasies of human nature.
He explains, "Effectively the stock market is a crowd which reflects the combined view of all those involved. So in order to outperform the market you have to be different, think differently from everyone else."
Talking the Talk
Cooper openly admits that working in this way, can be, at times an awkward strategy to follow in the short-term stating, "Many people state that they are long-term investors, however it is a lot easier to walk the walk. During times such as these it is extremely hard talk the talk."
However it has paid off with the LC Groups Institutional Growth Fund Portfolio outperforming 98% of its Large Cap Growth peers for the fifth year running. Within this half decade, there have been great years such as 2013, and times were returns were hindered in the short-term by certain IPO's that took over twelve months to exhibit their potential in a longer term aspect."
The success of the L C Group does not just rely on the team's ability to crunch numbers, but the personality of the team members. Cooper stated, "We are the success that we have become today not because we are virtuosos, it is all about personality, being disposed to be apart from the crowd is a component for the job."
Cooper and his fellow team members are regularly put through a series of mental exercises to reinforce their anti-crowd behavior. This takes the form of taking personality tests, which increase self-awareness through to reading academic material which has nothing to do with the world of finance and then discussing it on a weekly basis during meetings. The team members change their routines daily, stopping habits from forming and have an additional long weekend a month which is intended for having the space to think creatively.
Market specialization is inherently needed within the market however it can lead to investment teams becoming blinkered, ultimately a downfall of the market says Cooper. "Individuals naturally look to categorize things, and regularly opportunities do not fit neatly into one sector and this is an area where we concentrate on. We also identify other opportunities from the market reaction to short-term events such as price-earnings multiples etc."
Cooper finished by saying, "I attempt to avoid giving market outlooks, since you a saying something that essentially is indecipherable."
About the LC Group
London C Group is a specialist investment manager with offices in the City of London, providing discretionary management services for private clients, trusts, charities and pension funds.
We are one of the UK's largest discretionary investment management firms, focusing on providing and managing bespoke investment portfolios for private clients, trusts, charities and pension funds.
Our wealth advisors are committed to building long-term relationships with their clients, established on a foundation of exemplary personal service and investment expertise.
"A genuinely bespoke service is an increasingly rare commodity. We take an unbiased approach enabling us to build portfolios tailored to the individual preference of each client, without corporate hindrance. We choose from among the best and most suitable investments to meet our clients' aspirations, whether their priority is growth, income or capital preservation."
Thomas Anderson, Head of Technical Analysis and Currencies, L C Group
If you have any further questions regarding this article or would simply like to establish how L C Group can assist you, your family and/or business in securing your financial future then simply get in touch and arrange an appoint to speak to one of our wealth advisors.
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