Havelock London

Modern investment management

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Data science, and all that jazz

What is data science?

A lot of people are talking about data science at the moment, but they aren’t always clear about what they mean. Here at Havelock London, we consider data science to be the activity of collecting and processing data, to gain insight and guide decisions, often within a business. A data scientist combines computing, statistics, and domain knowledge – in our case, knowledge of investment management – to identify where and how data can be useful.

You mean AI, big data, machine learning and all that jazz?

Not necessarily. Whilst the ‘data science’ term is new, what it is describing is not. Scientists have always made discoveries about the natural world from observations, and there is a long history of ‘quants’ working in finance and businesses employing analysts. What has changed is the amount of data that most businesses can now access, and an increased demand for people who can identify ways to leverage this data.
The technical activities data scientists are involved in vary with the domain, but the goal is usually to improve the effectiveness of decisions, or to automate them. In some areas useful contributions come in the form of technology that can capture and organise data. In other areas advances are made by better understanding complex data that already exists.

Ok, so what has data science got to do with long-term investing?

Let’s start by identifying some of the challenges faced by an investor:

Too much data, too much noise!

Someone making an investment decision today does not lack data; there are newspapers, TV channels, websites, businesses and individuals dedicated to providing data and commentary about the financial markets. What is difficult is knowing which pieces are relevant. Investors need to know how to filter the massive amounts of information at their disposal.

Vast amounts of uncertainty

No one knows exactly what is going to happen in the markets tomorrow, let alone over the next few years. Some events are more likely than others but there always remains the possibility that you will lose money. An investor needs to be able to understand the range of potential outcomes that they face.

As for the solutions… watch this space!

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Press release: Havelock London appoints Link Asset Services

We are delighted to announce that we have chosen to work with Link Asset Services as our Authorised Fund Manager, see press release below for more details.

Havelock London selects Link Asset Services as its Authorised Fund Manager

New UK market entrant Havelock London has appointed Link Asset Services as the Authorised Fund Manager (AFM) for the launch of its inaugural fund later this year.

Havelock London intends to combine traditional investment management with modern data science and technology. It will focus on a small number of well-understood investments, and identify long-term value opportunities as a result of extensive data analysis and a disciplined investment selection process.

Link’s appointment as AFM to Havelock London follows a series of new wins for Link’s fund solutions team following its sale to Australia’s Link Group in November 2017 and cements its position as the UK’s leading independent Authorised Fund Manager and European fund Management Company.

Peter Hugh-Smith, Managing Director, fund solutions at Link Asset Services, said: “We are delighted to be appointed as AFM to Havelock London — an appointment that recognises our market leading expertise in supporting innovative market entrants. Havelock London brings an exciting investment approach to the market and we look forward to supporting, and assisting Havelock London in achieving their goals.”

Matthew Beddall, CEO and founder of Havelock London added:
“The explosion in the amount of data available to investment managers has the potential, when used properly, to revolutionise the way we analyse companies, invest money and report to customers. We are excited to be working with Link Asset Services as a key partner in our efforts to achieve this.”

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Press release: Winton Group invests in Havelock London

We are delighted to announce that we have secured equity investment from Winton Group. It means a lot to us to have this backing and provides wind in our sails as we continue to forge ahead with Havelock London.

Press release

Havelock London (Havelock), a new entrant to the British investment management industry, announced today that it has secured an equity investment from Winton Group, the global investment management and data science company.

Subject to regulatory approval, Havelock plan to launch a UK domiciled, global long only fund in 2018, which will be run according to value investing principles and will make use of Havelock’s proprietary investment analysis platform. This fund will act as a show case for the broader investment capabilities of Havelock, which it plans to offer by way of bespoke consultancy and future products.

Matthew Beddall, Havelock London’s founder and CEO, said, “We are delighted to receive the investment from Winton. In the coming months we will be working hard to receive regulatory approval, and this funding provides a strong foundation on which to build the company. We are committed to show how technology and data analytics, combined with traditional investment management, can help investors achieve better outcomes. Central to our investment philosophy is a desire to promote a form of responsible capitalism that recognises the need for capital markets to work in the interests of both investors and broader society.”

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Introducing Havelock London

After 17 years in Winton’s engine room I have decided to put down my (metaphorical) shovel, stop stoking the boilers, and create a new Investment Management business, in the form of Havelock London. Together, with my three co-founders, we have come together in the belief that the savings and investment industry has further to go in using data and technology to deliver value to those it serves. We will be working towards offering products that implement what we believe is best practice for a modern investment management business. As of September 2017, I shall be wielding my new Havelock shovel, working hard to build something completely new.

Joining me in this adventure are Neil Carter (ex-Jupiter Senior Distribution Head), Kate Land (ex-Winton Research Director) and Alisdair Wren (ex-Winton Technology Director). As a team we have lots of professional experience with data analytics, technology and investment management, which will be complemented by my experience in applying value investing techniques to manage my own savings.

Onward!