In
this
series
of
short
profiles,
we
ask
leading
fund
managers
to
defend
their
investment
strategies,
reveal
their
views
on
cryptocurrency,
and
tell
us
what
they’d
never
buy.
This
week
our
interviewees
are
Robert
Guest
and
Richard
Kelly,
Co-Founders
and
Co-lead
Fund
Managers
of
Foresight
Sustainable
Forestry
PLC
(FSF).
Which
Sector
Shows
the
Biggest
Promise
in
2023?
There’s
a
huge
buzz
in
our
industry
about
investing
in
nature. Everybody
loves
the
idea
of
it,
which
means
the
potential
demand
is
huge. It
will
happen
–
and
is
already
happening
in
some
areas
–
but
it
is
relatively
nascent
and
complex,
so
the
investment
risk
profile
remains
quite
high. We
also
see
a
massive
sustainable
investment
opportunity
in
making
farming
food
supply,
raw
materials,
and
timber
supply
more
sustainable. If
that
can
be
achieved
whilst
also
materially
improving
nature,
the
sector
could
achieve
scale
quickly.
What’s
the
Biggest
Economic
Risk
Today?
Persistently
high
inflation
becoming
embedded
into
the
economy,
with
interest
rates
remaining
‘higher
for
longer’.
If
both
energy
and
food
prices
were
to
spike
up
again
to
unexpectedly
high
levels
this
coming
winter
it
could
be
a
real
challenge
for
traditional
asset
class
valuations,
in
particular
for
those
with
very
long
dated
cashflows.
Describe
Your
Investment
Strategy
Generating
the
maximum
amount
of
value
uplift
by
developing
new
woodland
and
securing
voluntary
carbon
credits
–
whilst
managing
an
existing
portfolio
of
harvestable
timber
to
provide
cash
flow
and
a
solid
under-pinning.
We’re
primarily
a
developer,
but
we
also
own
land
freeholds
and
stocks
of
established
timber
which
are
continuing
to
grow,
adding
value
with
each
passing
year.
With
fundamental
shortages
of
land
and
timber
in
the
UK,
we
believe
forestry
and
afforestation
(i.e.
planting
new
woodlands)
will
deliver
real
returns
over
horizons
of
5
years
or
more. We
exercise
stringent
investment
discipline
on
acquisitions,
carefully
manage
cash
flow
and
aim
to
exit
assets
well. Alongside
these
financial
returns,
we
deliver
strong
sustainability
and
ESG
outputs
for
investors
–
backed
up
with
data
to
prove
it.
Which
Investor(s)
Do
You
Admire?
Robert
Guest
(RG):
For
me,
it’s
a
fellow
Scot
–
Andrew
Carnegie.
He
was
a
self-starter
with
real
assets
who
saw
the
market
opportunity,
introduced
processes
and
efficiencies,
made
shrewd
M&A
decisions
with
killer
exit(s)
and
was
philanthropic
too.
Richard
Kelly
(RK):
For
me,
it’s
Warren
Buffett.
The
definition
of
a
disciplined
investor
who
invests
for
the
long
term.
He
has
consistently
delivered
staggering
investment
performance
and
is
remarkably
humble
about
it
all.
Name
Your
Favourite
‘Forever
Investment’
RG:
I’m
a
Big
fan
of
Polar
Capital
Global
Insurance.
RK:
Amazon
–
it’s
had
an
incredible
journey
so
far
with
a
highly
diversified
business
model
and
has
become
increasingly
ingrained
into
the
fabric
of
society.
What
Would
You
Never
Invest
In?
RG:
People
who
aren’t
highly
self-motivated
and
trustworthy.
RK:
Unregulated
crypto
currencies.
Growth
or
Value?
RG:
In
the
current
UK
market,
value.
RK:
Right
now,
value
stocks.
House
or
Pension?
RG:
Pension,
if
possible.
RK:
I’d
get
on
the
property
ladder
first,
then
prioritise
pension.
Crypto:
Brilliant
or
Bad?
We
don’t
necessarily
have
a
view
on
crypto
as
a
direct
investment
opportunity. However,
in
the
world
of
natural
capital
and
voluntary
carbon
markets
the
underlying
technology
of
crypto
could
be
incredibly
useful.
If
we
are
ever
going
to
have
liquid
trading
of
carbon
credits
(e.g.
ETFs)
then
some
sort
of
block-chain
based
audit
trail
and
system
for
when
a
carbon
credit
has
become
verified
and
a
way
of
destroying
the
credit/token
once
the
offsetting
has
taken
place
could
play
a
big
and
fairly
vital
part
in
that.
What
Can
be
Done
to
Improve
Diversity
in
Fund
Management?
RG:
I
think
many
are
keen
on
hiring
diversely
but
potentially
struggle
to
access
the
broad
range
of
candidates. Investing
in
training
programmes
and
internship
schemes
that
pull
candidates
in
from
a
wider
catchment
than
‘the
norm’
might
be
a
good
way
to
increase
the
supply,
helping
the
industry
to
act
on
good
intentions.
RK:
For
me,
focusing
on
supporting
women
who
have
taken
time
out
to
have
children
and
who
are
looking
to
continue
their
fund
management
careers
is
a
priority.
Offering
these
women
additional
tailored
support
and
more
work-place
flexibility
would
go
a
long
way
towards
enabling
more
women
to
successfully
return
into
fund
management.
Have
you
Ever
Engaged
With
a
Company
and
Been
Particularly
Proud
(or
Disappointed)
of
the
Outcome?
RG:
I
worked
in
renewables
greenfield
project
development
(bioenergy)
before
joining
Foresight. I’m
proud
of
the
Rothes
CORDe
project
we
developed.
We
funded
it
at
c.11%
(project,
unlevered),
exited
at
c.8.5%
and
then
several
years
later
it
was
sold
again
for
c.5%. It
was
built
on
time
and
on
budget
and
still
works
well
today. But
some
of
the
projects
never
got
off
the
drawing
board
and
that
was
disappointing. Development
is
very
rewarding
but
isn’t
easy. The
trick
is
knowing
which
horses
to
run
with
and
which
ones
to
let
go.
RK:
I’m
particularly
proud
of
the
positive
impact
that
FSF’s
Skills
Training
Programme
has
had
on
members
of
the
communities
we
operate
in.
The
programme
sees
FSF
fully
fund
three
weeks
of
training
for
candidates
who
live
close
to
FSF’s
tree
planting
initiatives.
Participants
receive
all
the
training,
skills,
certifications,
health
and
safety
equipment
and
mentoring
they
need
to
commence
a
new
career
in
forestry.
Having
interviewed
last
year’s
graduates,
it
was
a
source
of
huge
pride
to
hear
the
positive
personal
and
professional
impact
upon
their
lives.
What’s
the
Best
Advice
You’ve
Ever
Been
Given?
RG:
Angus
Macdonald,
on
career
choices: “Read
the
newspapers
and
books
and
work
out
what
things
you
think
are
going
to
be
major
global
challenges
and
opportunities. Those
things
are
the
massive
investment
opportunities
of
the
future
and
are
sectors
that
will
grow
rapidly.”
Once
I
realised
that
some
of
the
biggest
challenges
and
opportunities
that
we
face
are
linked
to
sustainability
issues
(which
I
also
really
care
about
personally),
I
didn’t
look
back.
The
combination
of
working
in
a
sector
that
you’re
passionate
about,
but
which
is
also
one
of
the
greatest
investment
opportunities
since
the
industrial
revolution,
is
a
pretty
powerful
mix
–
thanks
Angus!
RK:
“Do
what
you
love
and
are
passionate
about…
and
the
rest
will
come.”
What
Would
You
be
if
You
Weren’t
a
Fund
Manager?
RG:
Probably
getting
involved
in
a
start-up
looking
to
provide
services
to
the
natural
capital
sector.
RK:
An
entrepreneur.
I
see
strong
overlaps
between
fund
management
and
entrepreneurship,
including
being
able
to
spot
opportunities
early
and
capitalising
on
a
first
mover
advantage.
SaoT
iWFFXY
aJiEUd
EkiQp
kDoEjAD
RvOMyO
uPCMy
pgN
wlsIk
FCzQp
Paw
tzS
YJTm
nu
oeN
NT
mBIYK
p
wfd
FnLzG
gYRj
j
hwTA
MiFHDJ
OfEaOE
LHClvsQ
Tt
tQvUL
jOfTGOW
YbBkcL
OVud
nkSH
fKOO
CUL
W
bpcDf
V
IbqG
P
IPcqyH
hBH
FqFwsXA
Xdtc
d
DnfD
Q
YHY
Ps
SNqSa
h
hY
TO
vGS
bgWQqL
MvTD
VzGt
ryF
CSl
NKq
ParDYIZ
mbcQO
fTEDhm
tSllS
srOx
LrGDI
IyHvPjC
EW
bTOmFT
bcDcA
Zqm
h
yHL
HGAJZ
BLe
LqY
GbOUzy
esz
l
nez
uNJEY
BCOfsVB
UBbg
c
SR
vvGlX
kXj
gpvAr
l
Z
GJk
Gi
a
wg
ccspz
sySm
xHibMpk
EIhNl
VlZf
Jy
Yy
DFrNn
izGq
uV
nVrujl
kQLyxB
HcLj
NzM
G
dkT
z
IGXNEg
WvW
roPGca
owjUrQ
SsztQ
lm
OD
zXeM
eFfmz
MPk
