The famous Springsteen song begins with “The Boss” bumping into a friend from high school and, of course, talking about the “Glory Days.” I don’t think it’s possible to listen to that song and not think about one’s own version of “Glory Days.” Listening to the opening chords, I can see my girlfriend’s face as the sun shines through a few loose ends of her hair on a summer evening. I can smell the exhaust from my not-too-eco-friendly ’68 Dodge Dart packed with friends during a midday run for pizza. And, I can feel my basketball team colliding with cheering fans in triumph after a big win over the crosstown rivals. No matter what memory is conjured up, the striking thing is that people and relationships drive memories and the associated nostalgia.
My best professional relationships are born from one of two things: 1) accomplishing big goals, or 2) tackling challenges as a team with a focused, united intensity. Like many others, we experienced a significantly challenging time during the COVID-driven market collapse in late March. Just over two months following the peak in volatility, it’s plain to see that this time period will not be easily forgotten. But these periods do have an advantage. They allow you to test your organization and partners, identifying strengths and weakness—both within and outside of your firm. Upon reflection, we have, of course, identified weakness. But more striking are the strengths, capability, and commitment of several key partners with whom we work; our appreciation for the strength of these partnerships cannot be understated, and I wanted to take this time to thank several of them that far exceeded our expectations.
Federated Hermes manages almost $600 billion, yet despite the market turbulence we had a dedicated team, including a portfolio manager for our strategy, participating in daily calls and assisting with navigating markets during an unprecedented environment—all with the explicit goal of providing the best outcome possible for our clients.
Société Générale (SocGen), our prime broker, who is one of the largest in the world with annual revenue being $24 billion dollars and total assets in excess of $1.3 trillion, went above and beyond to be accessible and collaborative through the height of market correction and beyond.
Our Custodian, UMB Bank was proactive and thoughtful about what challenges may lie around the corner and proactively offered their expertise to smooth any potential bumps along the way.
Analytic Investors (a Wells Cap Company), sub-advisor to our long/short equity funds, delivered by providing outperformance within the strategies that they manage for us, and were readily available for consultative calls that offered an external voice in a heightened period of market volatility.
Our private equity investor, Lovell Minnick Partners provided time and resources as day-to-day business questions arose and regularly offered shared insight from others in the industry.
Who you do business with and those with whom you build relationships is a key component to a successful firm. Our company has remained in a solid position after a turbulent time and I’m confident it is largely because of the time and commitment offered by multiple individuals from these remarkable organizations. From the entire staff of 361 Capital and on behalf of our clients, THANK YOU to all our partners for the relationships that made our business run smoothly, even in the roughest of waters.
The relationships that were deepened as a result of the recent events also makes me realize that maybe the “Good Old Days” don’t have to be in the past after all. In fact, to quote another music icon that has a song addressing the topic, consider this:
“I wish somebody would have told me, someday these will be the good old days….”
Oh yea, and that girl I was swooning about she’s my wife now, so you never know if maybe he’s on to something…
Read our recent blog post, Market Q&A with Blaine: Recession, Emerging Markets and Bitcoin >