There is nothing like an unexpected inferno to remind us that things can go up in smoke when you least expect it. Last week’s Heathrow Airport fire brought chaos, disruption, and the all-too-familiar realisation that a single point of failure can wreak havoc. Meanwhile, in markets, it’s been much the same—surprise shocks, turbulence, and a few emergency exit scrambles.
As I was feeling temporary smugness at Gatwick South departures, it did get me wondering how a single spark, or electrical fault, brought one of the world’s busiest airports to its knees. As a person who generally only sees plan A as an option, the fire (and the Aurigny delay) made me reflect on single points of failure in our world and the need for contingency. Regardless of how robust and resilient your processes are, things can still go wrong. Relying on one strategy, one asset class, or even one ‘star’ manager can be risky. That’s why we believe in team-driven decision making, diversified portfolios and spending time getting to know who we are investing with.
I strongly believe investing in a business or a fund means investing in the people. It means you have faith in the team and trust the trigger puller. Over 14 years in the industry, I’ve met a vast range of personalities and learnt quite quickly that it is easy to get wooed by a shiny presentation deck, a great story and a slick presenter. If you leave the meeting thinking “He/she would make a great politician” perhaps that should be a red flag…
So, what can we do to identify quality business leaders and management? What am I looking for when investing in a person? We like them HOT – honest, open and transparent. This is why a large portion of the due diligence process is qualitative. We can spend time discussing the wins but also what they’ve got wrong recently. What would they have done differently? What have they learned? It is also important to cover subjects like succession planning, team resources, and their ability to attract quality talent. We gather a lot from these responses and in some cases body language alone can tell us all we need to know.
The crisis delivers another lesson. For years, countries have focused on cost-cutting at the expense of resilience in critical infrastructure, prioritising short-term savings while underestimating long-term risks. Meanwhile, as energy consumption increasingly shifts to electricity, we must invest far more in the least sexy yet most essential part of the power system—the final 10 miles of the grid. This is where high-voltage electricity from overhead lines is converted into medium-voltage for distribution to businesses and homes. The network of super-transformers, substations, and underground cables demands significant investment, presenting compelling opportunities worth exploring.
There is always a rush to find the next star manager or pile into whatever the hot new thing is. That’s why we believe in a different approach—one built on honesty, transparency, and a team-based strategy that doesn’t hinge on a single star performer. No flash-in-the-pan success stories, just a steady hand through turbulence.
Markets, like Heathrow last week, have a habit of catching fire when you least expect. Whether it’s market volatility or any of life’s curveballs, the key is to stay calm, stick to the process and always keep an eye out for the next opportunity.
