Investment is learned skill: Man Group chief
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Man Group President Luke Ellis holds a copy of The Korea Times’ May 18 edition, which covered an English translation of novelist Han Kang’s book “The Vegetarian” winning the Man Booker International Prize on the front page, during an interview with the Times in Seoul last week. Man Group is a long-term sponsor of the literature prize. / Courtesy of Man Group
By Kim Jae-won
Luke Ellis, president of U.K.-based investment firm Man Group, said that investment is a learned skill which requires a lot of practice and intensive study of past records.
But, he warned of short-term investments, saying it is almost impossible for investors to receive steady returns from them.
“Like golf, investing is a learned skill. With investing, you need to be intelligent but there is no substitute for smart practice,” said Ellis in an interview with The Korea Times in Seoul last week.
He came to Korea to take part in a hedge fund forum held at the Conrad Hotel in Yeouido where he met with his current and potential clients, mostly institutional investors here.
“Great investors always keep records about their decisions so they can be objective about what they have learned. Many discretional and quantitative investors keep records.”
Ellis took, as an example, his company which has conducted commodity trading and quantitative equity for 25 years. He boasted of his firm’s library where they keep all of the research ideas for the last quarter century covering investment decisions and the outcomes.
The British investor said that Man Group is always looking for continuous improvement, saying short-term investments are the most troublesome because they are mostly about luck.
A few days before his visit to Korea, novelist Han Kang had won the Man Booker International Prize with her work “The Vegetarian” in London, becoming the first Asian to win the award. Man Group is a long-term sponsor of the literature prize.
“Han Kang’s The Vegetarian is a fantastic book, and it’s very thought-provoking,” said Ellis.
He also mentioned Deborah Smith, 28, who translated the Korean novel into English, saying it is amazing that she only started learning Korean at the age of 21.
Ellis said that with the sponsorship, the group catches two birds with one stone.
“It’s a really nice situation where Man Group can do something philanthropic but it is also good for the reputation of Man Group to participate in the renowned prize.”
On the Brexit issue, Ellis made it clear that it is a better idea that the U.K. remains in the European Union. The country is waiting for a referendum vote in June, in which it will decide on staying in the EU or not.
“The EU is not perfect, but from an economic point of view, I think it would be folly to leave the EU at this point,” said Ellis. “We all are aware that economic growth is low right now, and in the time of low growth, the last thing you want is years of uncertainty. It would be years of uncertainty if the U.K. leaves the EU.”
The British businessman also showed his preference for Hillary Clinton of the Democratic Party as the next U.S. president, saying he cannot trust the foreign policies of the Republican Party’s Donald Trump.
“I am not sure Donald Trump will win, but for the rest of the world, it’s a preferable situation if Hilary Clinton becomes the president.”