GUEST COMMENT: My life as a fund manager

Our approach to investment management is very much long term. Actual trading decisions are few and far between and it can be weeks before we take the plunge for a particular investment decision.

In fact, our working environment has more in common with a library than a trading floor. Most of our time is allocated to analysing companies in the existing portfolio and looking for potential new investments. The latter is a lengthy process.

Company analysis is about taking information from a diverse range of sources such as company accounts, books, articles, blogs and talking to people. This is synthesised into a cogent view of a business and its prospects. Predicting the future is, of course, always challenging, so it's important to embrace uncertainty in what we do and accept that we will frequently be wrong.

The importance of a robust debate

From my research, I usually produce a four-page report detailing the salient points that I think are key to an investment case. My small team of 5 invests in global equities, and my reports - along with those of my colleagues - are discussed during two weekly meetings.

It's important to question each others' decisions and a robust debate normally ensues, although we know each other well enough to not take it personally. The idea is to tease out issues worthy of further thought, as well as deciding what steps to take next. There's a diverse range of viewpoints - I have a background in mathematics but I was recruited alongside a geologist and an historian.

Then there's the twice-weekly meetings of the whole investment team at Baillie Gifford. We use this as an opportunity to discuss world events and exchange investment ideas. If a piece of my research is of broader interest, I present it at these meetings.

Managing portfolios is largely administrative, but mistakes are hugely costly

The whole approach to investment here is team-based, which means managing portfolios is largely administrative. If one of the team members has an idea which they're enthusiastic about and it has withstood the scrutiny of the team, then we back that person.

The problem is that any mistakes when placing the order have the potential to be very costly indeed. The deals we place for client often involve sums of hundreds of millions of pounds, so accuracy is vital.

The final element of the job is managing the relationship with clients. Being able to explain views on the investment environment and individual companies is a key skill of any fund manager.

Whether it's via telephone, in our offices or (occasionally) trips to their offices, most weeks will involve at least one meeting with clients. These meetings come in a myriad of formats, ranging from informal chats with individuals who know our approach to set piece presentations in front of several hundred potential investors.

There's also the potential for overseas trips to visit potential or existing investments and clients, but these usually occur no more than three or four times a year.

The life of a fund manager may not be as frenetic as a trader, but the investment backdrop is constantly changing and it's the variety of the job that makes it so interesting.

Tom Slater is an investment manager at Baillie Gifford