Culture is Key: Q&A with Daintree Capital's Mark Mitchell
After nearly 15 years working as a portfolio manager, for both CFSGAM and Kapstream, Mark Mitchell decided it was time to take matters into his own hands and launch his own boutique, Daintree Capital. Mark tells Industry Moves why culture is integral to the success of the business and about his goal of creating a workplace that is dynamic, innovative and collaborative. He also tells us a little about his partnership with Perennial, names the person who has had the greatest influence on his life, and the importance of 'living by your values'.
After nearly 15 years working as a portfolio manager, for both CFSGAM and Kapstream, Mark Mitchell decided it was time to take matters into his own hands and launch his own boutique, Daintree Capital. Mark tells Industry Moves why culture is integral to the success of the business and about his goal of creating a workplace that is dynamic, innovative and collaborative. He also tells us a little about his partnership with Perennial, names the person who has had the greatest influence on his life, and the importance of 'living by your values'.
What lead you to start your own boutique firm?
There were quite a few reasons but the key driver was culture. The goal at Daintree is to create a dynamic, innovative and collaborative culture that allows everyone opportunities to grow, be challenged, financially rewarded, enjoy coming to work and be actively involved in the evolution of the business. That is the type of environment we will work to create. That is the sort of culture I want to be a part of and I suspect a lot of other people do as well. I spend more time at work than I do with my family, so I need to enjoy what I do and who I do it with. At all times our primary focus, will be to deliver good investment outcomes for our clients, but the people you partner with and the culture you create play a critical role in that process. We have given considerable thought as to how to attract, retain, and incentivise people who can contribute to the culture that we want to create at Daintree. The great thing about a smaller boutique firm is that it is genuinely possible to create that type of culture. It can be done at larger firms as well but is considerably more challenging.
As your new firm will be specialising in fixed income, what was the strategy behind partnering with a company that focusses on active equities?
At present Perennial is an equity focused organisation, but they have a long history with fixed income. They have only been out of the asset class for a couple of years so there is still significant knowledge of fixed income within the organisation. Perhaps as important as asset class knowledge is finding like-minded people to create the right partnership. We feel like Daintree has a very strong partner in Perennial. As mentioned, culture is extremely important to us and we have been very pleased to find a partner with a similar focus.
What was the best lesson that you took away from your seven years working with Kapstream?
There were quite a few but perhaps the most surprising lesson for me was that for better or for worse, marketing is a critically important element to the success of an investment management business. The "build it and they will come" philosophy often doesn't work in this industry. Ultimately, you are selling trust to your clients and familiarisation breeds trust. You must get in front of your clients, let them challenge you, question your decisions, question your competence, question your intentions and prove that you are worthy of managing their money.
How do you feel about moving from an established organisation to now forging your own pathway? Does having the financial backing from Perennial elevate some of the major pressures?
Yes, that is part of the challenge but also part of the fun. It's very similar to the early days at Kapstream. When I started we only had one external client and a very limited track record, so to a large degree I feel like I've been through this before. Partnering with a firm like Perennial, that has been through it before as well, is certainly a huge plus for Daintree. Perennial is run by some exceptionally capable people with a long successful history of developing new boutique fund managers.
What's the best piece of advice that you have received?
It's hard to narrow it down, but some of the best advice I've been given is to live by your values rather than trying to be "successful", making a fortune, or achieving a series of increasingly more challenging goals. Define what matters to you and do your best to live by those values and chances are that will take your life in the direction you should be heading.
What was your very first job?
My first job was working for a grocery store chain in Texas called Winn Dixie while I was in high school. I was a shelf stocker. I would go to work at 10pm, work until about 4am, go home and sleep for a couple of hours and then go to school. Needless to say looking at computer screens all day is a bit easier.
Who has had the biggest influence on your career thus far?
There is a long list of people that I have learned from and admire in this industry, but one that I admire the most is Howard Marks at Oaktree. I love how he thinks, his willingness to share his ideas and his patient, methodical approach to markets and investing. And despite being exceptionally wealthy and successful, he continues to challenge himself and his thinking because of his genuine passion for investing. Those are the sort of people you want managing your money.
Starting your own boutique must be chewing into a lot of your spare time, especially in the initial stages. How do you maintain a work/life balance?
It's early days, so there is obviously a lot to do but it's manageable. I was at home for about a year while I was setting up the business with my three young children, so truth be told, it's a lot easier being in the office.
