13 Questions for Seilern Europa’s Nina Yu

Describe
Your
Investment
Strategy

At
Seilern,
we
have
a
particular
way
of
investing
that
involves
buying
high
quality
businesses
with
sustainable
growth
and
holding
them
for
a
long
time.
At
the
heart
of
this
style
is
the
principle
that
over
time,
earnings
growth
will
drive
share
prices.
With
this
in
mind
we
are
looking
for
companies
that
can
grow
their
earnings
at
the
highest
rate
possible,
with
the
caveat
that
we
want
them
to
do
this
in
a
sustainable
way.
Although
this
strategy
is
very
simple,
it
is
not
easy
and
we
dedicate
significant
resources
and
time
to
researching
these
companies
and
to
building
concentrated
funds
that
can
stand
the
test
of
time.

What
are
the
Biggest
Investment
Opportunities
in
2024?

The
judgement
on
the
best
investment
opportunities
will
always
tie
up
with
one’s
investment
philosophy,
strategy,
and
risk
tolerance.
Based
on
our
long-term
horizon
and
quality
growth
style,
the
biggest
investment
opportunities
in
2024
are
likely
similar
to
the
best
ones
for
2023
and
2022
and
2021,
etc.
We
put
a
lot
of
effort
into
measuring
investment
opportunities
over
long
periods,
which
makes
accounting
for
these
opportunities
over
a
calendar
year
less
relevant.
In
recent
years,
we
have
found
that
quality
companies
that
have
ridden
secular
trends
such
as
digitalisation,
artificial
intelligence,
or
broadly
technology,
health
and
sustainability
have
tended
to
be
good
investment
opportunities. 

What
are
the
Biggest
Risks
to
the
Current
Bull
Market?

As
is
often
the
case
with
the
end
of
a
bull
market,
the
biggest
risks
are
usually
not
the
ones
that
are
on
everybody’s
lips.
I
think
Covid
has
also
taught
us
something
about
unknown
risks.
Also,
different
investment
styles
will
look
at
risk
differently.
To
us,
the
biggest
risk
is
a
permanent
loss
of
capital.
So,
our
focus
is
much
less
on
predicting
what
will
happen,
but
on
building
resilient
portfolios
that
have
the
best
chance
to
weather
all
different
storms.
As
my
colleague
Quentin
said
in
one
of
his
newsletters,
our
goal
is
to
create
“a
fund
for
all
seasons”. 

Who
is
the
Most
Inspiring
Person
You’ve
Worked
With
and
Why?

I
find
most
people
I’ve
worked
with
are
inspiring
in
some
way.
Probably
because
having
worked
with
lots
of
people
with
quite
different
background
and
cultures,
from
Beijing
to
Paris
to
London,
you
really
see
the
same
valuable
human
spirit
everywhere,
like
the
passion
they
have
for
what
they
do,
the
resilience
they
show
in
tough
times,
the
courage
to
stand
for
what
they
believe
in,
and
the
kindness
they
extend
to
others.
Sometimes
it
is
as
simple
as
the
joy
they
share
with
those
around
them.
These
experiences
have
inspired
and
enriched
my
life.

What,
if
Any,
Investments
Would
Fit
Into
the
‘Buy
and
Hold
Forever’
Category?

I’d
first
modify
the
category
to
“buy
and
hold
for
long
term”. 
Businesses
that
can
fit
in
this
category
would
be
ones
in
which
we
can
develop
a
certain
amount
of
conviction
in
the
sustainability
and
quality
of
its
earnings
growth.
Typically,
that
means
they
have
durable
competitive
advantages
and
benefit
from
secular
trends.

What
Would
You
Never
Invest
in? 

As
a
quality
growth
investor,
I
would
not
invest
in
something
that
I
deem
not
quality
growth. 

How
Worried
Should
Active
Managers
Be
About
the
Future?

I
guess
that
a
dynamic
balance
exists
between
the
different
management
styles
–
active,
passive
or
something
in
between.
They
cater
to
different
investor
demands
in
different
circumstances.
Probably
more
importantly,
passive
investing,
despite
being
a
sound
strategy,
is
essentially
a
free
rider.
They
largely
rely
on
an
efficient
market
driven
by
active
participation.
Without
enough
active
managers,
market
efficiency
will
suffer,
which
will
undoubtedly
impact
all
investing
styles.

At
the
end
of
day,
nobody
knows
what
the
future
holds.
In
investing,
you
confront
that
fact
every
single
day.
And
that
is
also
the
fun
of
it!
You
learn
to
be
thorough
and
to
be
prepared,
but
you
also
learn
to
embrace
the
uncertainty
and
worry
less
on
things
you
have
no
control
over.

What
Unpopular
Investment
Opinions
Do
You
Have?

We
should
think
more,
think
more
clearly,
and
speak
less
about
our
opinions.

Has
Crypto’s
Resilience
Surprised
You?
And
Will
We
See
a
Crypto
ETF
in
the
UK?

It
depends
on
what
you
mean
by
crypto.
From
a
technological
perspective,
cryptography
has
existed
for
a
long
time. 
DLT
(distributed
ledger
technology)
along
with
the
blockchain
are
relatively
new
technologies,
but
were
still
born
more
than
a
decade
ago.
They
are
great
innovations,
so
I
wouldn’t
be
surprised
by
the
resilience
and
continuous
development
of
the
technology.
They
are
still
at
early
stages
with
many
challenges
to
overcome.
But
what
that
means
for
cryptocurrencies
and
cryptocurrency
ETF’s,
I
do
not
know.
These
types
of
investments
fall
squarely
outside
of
our
core
philosophy.

Does
Asset
Management
Have
a
Role
in
Promoting
Social
Mobility?

Social
mobility
is
essential
for
the
health
and
sustainability
of
society.
The
asset
management
industry
is
certainly
no
exception.
Social
mobility
benefits
the
industry,
because
it
creates
a
system
where
the
most
qualified
and
talented
people,
regardless
of
their
background
can
contribute
their
talents
to
the
industry.  

Have
you
Ever
Engaged
With
a
Company
and
Been
Particularly
Pleased
(or
Disappointed)
by
the
Outcome?

Yes.
Researching
a
company
is,
to
some
extent,
like
figuring
out
a
puzzle.
Engaging
with
a
company
directly
is
sometimes
a
great
way
to
help
finding
a
missing
piece.
But
a
“pleasing”
outcome,
or
a
successful
interaction,
takes
two
sides.
You
need
to
ask
good
questions
and
be
a
good
listener
and
the
company
also
needs
to
be
open
and
willing
to
engage.
Occasionally,
it
can
be
disappointing
when
a
company
talks
a
lot
without
saying
anything.
But
that
too
teaches
you
something. 
 

What’s
the
Best
Bit
of
Advice
You’ve
Ever
Been
Given,
Personal
and
Professional?

This
may
sound
banal,
but
the
one
that
has
had
the
most
practical
impact
is
probably
“have
you
tried
turning
it
off
and
on
again?”. 

What
Does
Your
Life
Outside
of
Fund
Management
Look
Like?

I’m
very
fortunate
and
grateful
to
have
a
loving
family
with
two
young
kids.
I
wonder
if
children
are
nature’s
most
sacred
gift?
They
are
so
energetic,
full
of
life
and
joy.
I
very
much
enjoy
creating
and
growing
together
with
them. 

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