The investing principles of… Andrew Hollingworth – Part two
Mar 27th, 2020 by piworld
This is the second interview with Andrew Hollingworth, Founder and Fund Manager at HollAnd Advisors. Here, Andrew covers more about risk management, meeting management, what he’s learnt managing the fund, and much more.
Note, this was recorded during February 2020, before COVID-19 gripped the nation, and torpedoed markets. It would be interesting to get Andrew’s perspective on where we are now!
How has MIFIDII affected you and the industry? – 00:30
How do you gauge your margin of safety? - 02:26
How do you manage risk? - 04:17
Position sizes? - 06:12
Number of holdings? - 08:44
Cash position? - 09:57
Do you think we’re in a high-risk environment? - 12:10
What’s your view on meeting management? - 13:40
Do you invest in IPOs? - 17:30
Are there any companies you regret you didn’t buy? - 18:44
What’s your worst mistake, and learnings? - 19:30
What’s the best thing you’ve done for the fund? - 22:00
Coronavirus and the macro picture - 24:14
The fund - 27:37
Companies mentioned: JD Weatherspoon (LON:JDW) 03:30; Sports direct (LON;SPD) 15:30; Amazon (NASDAQ:AMZN) 19:25
About Andrew Hollingworth: Andrew started working in the investment industry when he was just 18 years old, having bought his first share when he was just 14. Andrew founded Holland Advisors around 15 years ago. At the time, Andrew realised that there was a proven way to be a more successful investor. The core driver behind the investment process at Holland is the use of investment approaches proved successful by the likes of Buffett and John Templeton. These clear processes helps them take a long-term approach in assessing companies, their managements and their prospects when trying to find the high-quality franchises that they think will compound at a good rate over time. Then, they will only buy shares in them if they are at an attractive price.
Andrew says, “We think our USP is the disciplined application of proven value-investing approaches in an often efficient, but occasionally mispriced market. Our approach differs from many others in two important ways. First, we strongly believe you have to know what you are looking for in an investment before you go shopping. Our study of great investors has helped us refine our process. As a result we are very clear about the company business models we find attractive and why, and we only buy something when it comes with a margin of safety. The second point is our desire to learn. It is human nature to want to get better at something, but it is easy in this industry to be too busy to have the time to do so. There are always opportunities to learn and we welcome them.”
The HollAnd Advisors website has a vast wealth of educational resources and is well worth checking out. Look for the pdfs, including: “How we invest and Think”, and the latest article: “The Perfect Storm – Peak Fear – What to buy and when.”