Created: Nov 17, 2023 08:00 AM
Bermudian James Thomson is becoming a veteran in the wealth management industry in London (Photograph supplied)
When Bermudian James Thomson started managing the Rathbone Global Opportunities Fund in London, it was worth £4 million. Twenty years later that figure has grown to £3.5 billion.
“It feels like my baby,” Mr Thomson said. “The United King Investment Association has ranked it No 1 in the country for all global funds. We have a track record to be proud of.”
Inflation and a potential recession are the biggest issues facing the investment industry right now.
“Perhaps investors have veered away from a long-term mindset that we need to return to,” Mr Thomson said.
However, he said, if the world does go into recession, there might be a silver lining.
“That will be the time when the Fed and the other central banks would start lowering interest rates,” he said. “Perhaps the recent rally we have seen in global stocks has been a preview of that. The real enemy is inflation.”
His portfolio is filled with companies that can thrive in different economic scenarios.
“That will always keep our head above water,” he said.
His two decades in the business have not always been easy. His growth-oriented strategy was hit hard during the 2008 financial crisis, and also last year.
“I outperformed for 17 of those years,” Mr Thomson said. “You get the perspective that even after very difficult and insurmountable problems, the market can heal itself with the benefit of time.”
The annualised return of his fund over 20 years is 12 per cent.
“That masks big moves up and down to get that average,” he said. “That is the way the stock market works. Your returns don’t come in a smooth and linear way; they often come when you least expect them.”
He has not forgotten his birthplace. Whenever he makes a presentation to new clients, he starts with a slide showing Bermuda.
“There is even a little arrow on it showing the Thomson family homestead,” he said.
He studied French at Cornell in Ithaca, New York.
“It wasn’t until I graduated, and spent some time working summer jobs in the industry, that I saw my desired path,” Mr Thomson said.
He moved to London in 2000 and starting working for wealth management firm Rathbone three years later.
“You do not necessarily need a degree in economics to be a good fund manager,” he said.
When interviewing job candidates, he looks for people who are reliable and adaptable, but not overconfident.
“Arrogance and overconfidence are a big danger in this industry,” Mr Thomson said. “Self-consciousness is not a bad trait to have. It means you are more willing to change your mind. Insecurity is not a bad thing as long as you do not let it overwhelm you.”
He loves meeting the best and brightest leaders in the business world.
“You get to see what works and then try to use that as a template for future investment success,” he said.
Business is in his blood. His father, William “Bill” Thomson, was involved in the Bank of Bermuda years ago, and brother Stephen Thomson started Mailboxes.
At Rathbone, they are starting to call Mr Thomson a “veteran”.
“It sounds a little insulting,” he joked.
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