AFR: How fund manager Michael Hintze makes money from geopolitical unrest
The Australian Financial Review (AFR) published an in-depth profile of Sir Michael Hintze, Founder, Chief Executive and Senior Investment Officer of CQS.
In the article, AFR highlight’s Sir Michael’s philosophy that the key to successful investing is turning knowledge into insight:
"You need imagination, curiosity and context," he says. "The key is having to do the hard work of fundamentally analysing a company or market. But also to consider other factors.
"Which is why the geopolitics is important. It is why history is important. It is why economics is important and having broad context. We have guys who trade very small Australian miners all the way through to guys who trade asset-backed securities, so all of that comes together. It's a rich tapestry."
The article also notes how Sir Michael and his team at CQS have analysed geopolitical risk to identify investment opportunities:
Hintze says geopolitical risk is poorly understood and poorly priced in the markets. Investors often "forget about it until they can't". Part of the problem, he says, is that it is hard to identify a "transmission mechanism" that turns a terrorist attack or pandemic into a market event…
In order to better understand how geopolitical events move markets, CQS has hired Neil Brown as its geopolitical strategist. A former naval officer, Brown more recently worked in the British Ministry of Defence and Cabinet Office where he co-authored a report on engagement with the Gulf states… Brown's appointment is aimed at ensuring CQS is "plugged into the right people" to synthesise great swaths of potentially market-moving information.
AFR also highlights Sir Michael’s lifelong commitment to philanthropy, noting that the “beneficiaries of his success have been the galleries, museums, universities and religious institutions that have received £65 million in donations from the Hintze Family Charitable Foundation.”