Get to know your Portfolio Manager - Andrew Padoa

What does portfolio management and guitar riffs have in common? – Andrew Padoa! That is the answer. In this latest piece we learn a bit more about the man who shares a surname with a charming Italian town nestled just west of Venice, even though he cannot speak a word of Italian!

“Be intellectually curious and go to bed smarter than when you woke up. Have a good attitude, it makes the world of a difference,” these are Andrew Padoa’s words of advice to anyone wanting to tap into the portfolio management industry.

Pursuing a career as a Portfolio manager struck Andrew after he developed a keen interest in stock markets around 2005/06 and in as much as he was working for a Wealth Management company back in 2010 his biggest desire was in the stock market; his ears would perk up with key interest during fund manager presentations fuelling his burning desire to pursue a career in portfolio management.

Fast forward to 2015, “Tavis Cairns employed me in the Sasfin Wealth Durban office as a Trader/Portfolio Manager Assistant. I became a Portfolio Manager in 2016. What I enjoy most about the job is the infinite challenge of markets, and helping our clients grow their wealth.”

From a portfolio management perspective, you want to hold a diversified basket of companies. If you only hold three companies in your portfolio and you get one wrong, it will make a big dent in the total portfolio value. You ideally want to hold 20-30 stocks in a portfolio to get sufficient diversification.”

So, this begs the question I had to ask, how do you balance long-term investment goals with short-term market fluctuations and economic uncertainties? “The media often portrays doom and gloom. There is always something to worry about in markets. The key is to take the long-term time horizon and focus on what the companies are doing. Who would have thought that European stocks would be doing so well right now given inflation being so high, and with a war in Ukraine?”

One can just imagine the stress of portfolio management from coping with risk management, market volatility, performance pressure, information overload, decision-making under uncertainty, and client relations. These factors contribute to the inherent stress in the field, a moment of silent empathy for all those courageous portfolio managers out there. In such a high-pressure environment, a healthy work-life balance becomes imperative. Andrew destresses by spending time with family and friends, running, teeing off on the golf course, and finding solace in the uplifting guitar riffs of Oasis and Keane while unleashing his inner rock 'n' roller.

Having also completed an Investment Course from the Columbia Business School in New York, Andrew learnt some of the innovative investment theories practised by some of the best money managers in the world. He shares a glimpse on a recent investment decision made, by him and the Investment Committee to the Sasfin Global Equity model and to the Sasfin Global Equity Fund.

“As a committee, we looked at the industry to decide whether it was attractive or not and we looked at the companies within the sector. Zoetis and Idexx were the two companies that we looked at, and we chose Idexx based on a combination of factors that included quality of the company, valuation, and future growth prospects.”

Humbly, he acknowledges the immense contributions of Jonathan Wernick and Dawid Balt, remarking, "They did the hard work here".

Contrary to the widely held belief that portfolio management is a one-man job, it significantly thrives on the spirit of teamwork and continuous professional growth. “I read a lot and listen to podcasts all the time. In the words of Charlie Munger, I try to go to bed a little bit smarter than when I woke up. Over prolonged periods of time this compounding effect will have a significant impact. I try use spare time wisely, so I listen to podcasts during my commute to work and whilst I wash dishes after dinner in the evening.

Curious about Andrew's literary preferences, we discover his recent readings. “I just finished a book by Fred Martin called “Benjamin Graham and the Power of Growth Stocks,” but am now reading “Don’t sleep, there are snakes” by Daniel Everitt".

Offering a valuable tip to investors, Andrew advises “buying high and selling low is probably the biggest mistake. This error could be reduced by building a solid investment process".

Eager to delve into Andrew's insights on investment megatrends shaping the next decade? Watch this captivating webinar here, featuring Andrew himself, alongside Chief Investment Strategist Craig Pheiffer and Portfolio Manager Muhammed Wagley.

Dive into the world of portfolio management with Andrew Padoa. Discover his investment insights, risk strategies, and unique passions. Stay tuned for more expert advice from Sasfin Wealth’s Portfolio Managers