25th September 2026
When analysing funds for potential investment we spend a lot of time thinking about the dynamics of the portfolio management team and the broader culture of the asset management firm. Happy fund managers operating in supportive environments tend to be best placed to maximise their potential.
In turn we periodically revisit our own team setup recognising that occasional self-reflection and reappraisal is important. No one has the perfect investment process so any efforts to improve and evolve should be part and parcel of any firm’s culture.
The Hawksmoor Fund Management team consists of 4 Fund Managers supported by an Operations department who allow us to concentrate on the day job of managing the Funds. We run with a flat structure, are all generalists and have worked with each other for a long time.
A team of 4 we think strikes a good balance, providing sufficient resource to cover the multi-asset waterfront and to conduct the deep due diligence required when analysing underlying investments, but is tight enough to allow for quick decision making and to avoid the idea dilution and paralysis that can arise from committee type structures. The 4 of us sit closely together, are in the office 5 days a week and make decisions collectively (we do not employ analysts) helping engender a high degree of accountability. We aspire to own both our winners and losers as a team and to not assign blame individually when something goes wrong.
The flat structure and fact that we are all generalists means ideas can come from anywhere and equally engenders an environment of healthy debate where all members are equipped to provide challenge. The generalist approach also, we believe, enrichens the all-important conversation around portfolio construction.
They say familiarity breeds contempt, so the fact that we’ve worked together for such a long time might not necessarily be seen as a positive. Groupthink is a real possibility and one that is probably exacerbated when employing an investment process as disciplined as ours. We strive, however, to remain cognisant of this risk and would like to think we are self-aware enough to understand where the pitfalls of our investment process lie. For example, we analyse our mistakes and identify where we might be consistently over-estimating our abilities or where we are not resisting the siren calls of ‘special situations’ that turn out to be value traps – see Dan’s Crescendo from May for example. More positively, our shared longevity of tenure seems to have fostered an environment that allows for robust discussions (or heated arguments depending on your interpretation) safe in the knowledge that no one will take lasting offence, which we think is additive in the decision-making journey.
The broader merits of a team-based approach as opposed to a star manager culture are, we think, significant and multi-faceted. Firstly, it can help avoid the behavioural biases that individuals might be more prone to. The risk of falling in love with an investment and ceasing to view it objectively can, for example, be mitigated with 4 pairs of hands on the tiller. The potential for hubris and overconfidence can also, we believe, be dampened by the team approach. The benefits of a tight knit team especially come to the fore during those inevitable periods of difficult performance, episodes which can sow seeds of doubt. The team approach encourages resilience and combined with experience and an investment process which has been tried and tested through multiple cycles results in a high pain threshold and resolve to stick to our proverbial knitting.
More practically, the team approach means that we all get the opportunity to go on holiday safe in the knowledge that the Funds are being looked after by trusted colleagues. Coming back recharged and refreshed after a proper break is important in retaining hunger and avoiding burnout. Investing is, after all, a long race, one that is never won and one that requires consistent focus.
In terms of broader firm culture, we have been fortunate to retain autonomy and independence which has allowed us to protect the sanctity of the investment process which in turn has enabled us to deliver differentiated portfolios and good through-the-cycle returns. This has been the case through corporate change and the odd inevitable and understandable bureaucratic incursions that occur from time to time. We’re lucky to have a team head who insulates the rest of us from these occasional distractions, allowing us to focus on the all-important job of managing the funds.
As Charlie Munger succinctly highlighted, incentives are important in any culture and help determine outcomes. A big chunk of our remuneration is linked to performance, whilst most of our savings are invested in the Hawksmoor Funds alongside our clients.
This note has turned out to be a little more self-indulgent than planned and we certainly don’t want to leave the impression that we think we have the perfect team structure or the perfect approach to running money. Ultimately though individuals, relationships and team dynamics in fund management matter. We pay considerable heed to this when considering underlying funds for inclusion in our mandates and when reflecting on our own approach to managing money. Finally, we recognise it is only thanks to the patience of our clients, who put up with our inevitable periods of underperformance, that allows us to function as we do – and for that, we are incredibly grateful.
Ben Mackie – Senior Fund Manager
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For professional advisers only. This article is issued by Hawksmoor Fund Managers which is a trading name of Hawksmoor Investment Management (“Hawksmoor”). Hawksmoor is authorised and regulated by the Financial Conduct Authority. Hawksmoor’s registered office is Sterling Court, 17 Dix’s Field, Exeter, Devon EX1 1QA. Company Number: 6307442. This document does not constitute an offer or invitation to any person, nor should its content be interpreted as investment or tax advice for which you should consult your financial adviser and/or accountant. The information and opinions it contains have been compiled or arrived at from sources believed to be reliable at the time and are given in good faith, but no representation is made as to their accuracy, completeness or correctness. Any opinion expressed in this document, whether in general or both on the performance of individual securities and in a wider economic context, represents the views of Hawksmoor at the time of preparation and may be subject to change. Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested. FPC26771.
