A short presentation on how asset managers and hedge fund managers resolve conflicts within the ranks, from partners to traders/PMs to analysts.

1. VP EXECUTIVE COACHING
SERVICES
HOW MANAGERS
PERFORM CONFLICT
RESOLUTION IN HEDGE
FUNDS/ASSET
MANAGEMENT

2. INTRO
3x ENTREPRENEUR, MIT-PORTUGAL IEI
INTELLIGENCE LEAD TURNED EXECUTIVE
COACH
EXECUTIVE COACH FOR 5 YEARS, MAINLY FOR
CEOs AND HEDGE FUND MANAGERS.
MY GOAL: TO MAKE SURE CEOS AND LEADERS
NEVER ACHIEVE LESS THAN ELITE RESULTS IN
A WORLD MORE COMPETITIVE THAN EVER
COMBINED BACKGROUND OF
PSYCHOLOGICAL, COACHING, SILICON VALLEY,
MIT AND OTHER TECHNIQUES FOR PEAK
PERFORMANCE

3. MY LIFE NOW
MOSTLY LEADERSHIP AND TALENT
MANAGEMENT FOR SENIOR LEADERS
COMMON SITUATIONS:
- ASSESSMENT AND SUCCESSION PLANNING
FOR A NEW LEADER;
- LEADERSHIP DEVELOPMENT FOR RAMP-UP
OF NEW LEADERS;
- INFLUENCE AND PERSUASION
TECHNIQUES FOR COLLABORATION
BETWEEN EXECUTIVES, WITH BOARDS,
BETWEEN INVESTORS <> CEOS;
- INFLUENCE FOR RAISING CAPITAL FROM
ALLOCATORS + CLOSING INSTITUTIONAL
SALES;
- …. AND ALL SORTS OF CRISES;
...

4. HAPPY CUSTOMERS (LINK)

5. MORE RESOURCES AT BOOK A CALL AT

6. CONFLICTS IN ASSET
MANAGEMENT
CONFLICT RESOLUTION IS CRUCIAL IN ASSET
MANAGEMENT TO MAINTAIN ALPHA AND
INSTITUTIONAL-QUALITY OPERATIONS
FIVE MAIN TYPES OF CONFLICTS
1. BETWEEN CEOs/CIOs/FUND
MANAGERS/PARTNERS;
2. BETWEEN TRADERS/PMs AND ANALYSTS
WHEN TURNING RESEARCH INTO
INVESTMENT THESES;
3. BETWEEN TRADERS/PMs AND
RISK/COMPLIANCE OVER AUTHORIZING
SPECIFIC TRADES;
4. BETWEEN PMs/TRADERS/ANALYSTS OVER
THE QUALITY OF IDEAS;
5. BETWEEN A TALENT MANAGER AND A
TEAM MEMBER;

7. THE ETC MODEL FOR
CONFLICT RESOLUTION
DEFINES THREE KEY STEPS FOR CONFLICT
RESOLUTION:
1. APPLY EMPATHY;
2. SEPARATE TASK CONFLICT FROM
RELATIONSHIP CONFLICT;
3. REINFORCE ALIGNMENT WITH CULTURE
AND/OR CANDOR;
EMPATHY: UNDERSTANDING THEIR POINT OF
VIEW TO MAXIMIZE RAPPORT
TASK CONFLICT: SEPARATING AN ISSUE WITH
THE IDEA/CONCEPT FROM AN ISSUE WITH
THE PERSON
CULTURE AND CANDOR: POSITIONING THE
ISSUE AS HONESTY AND EMBODYING
COMPANY VALUES, NOT A PERSONAL ISSUE

8. EMPATHY
UNDERSTANDING THE OTHER SIDE’S
SITUATION TO GAIN MORE LEVERAGE.
OTHER TECHNIQUES LIKE EMOTIONAL
INTELLIGENCE CAN HELP IN THIS PHASE
IN SUMMARY, EMPATHY IS STATING “I KNOW
YOU MUST BE FEELING XYZ DUE TO XYZ AND
I FULLY UNDERSTAND THIS. I KNOW HOW
YOU MUST BE FEELING. HOWEVER, I HAVE TO
SAY THAT XYZ”, OR SOME VARIATION OF IT

9. EMPATHY MODELS
DISAGREEING WITH AN INVESTMENT
PROCESS/STRATEGY:
"John, I really understand your point of view. I
understand your finance expertise and the
skill with which you usual craft portfolios and
define strategies. I respect that in you and
that's not at stake here. I understand you
might consider this is disrespectful, or a
personal attack even, but unfortunately I have
to tell you I disagree with this
portfolio/strategy"

10. EMPATHY MODELS
DISAGREEING WITH AN INVESTMENT IDEA:
"John, I understand you came up with this
idea, which seems very valuable, and that
you're proud you came up with it. I agree, it
sounds very good as an idea in general.
However, please allow me to say that in the
current environment it just won't work. This
isn't an attack on you as a professional or
judging you. It could be a great idea and work,
but in this case it just doesn't. I'm very sorry for
this"

11. EMPATHY MODELS
TELLING AN ANALYST THEIR RESEARCH IS
NOT GOOD ENOUGH TO BUILD A THESIS:
"John, I know how much value you put into this
research, and everything that you had to go
through. I know your attention to detail and
the effort you put into everything. However, I
have to say that unfortunately this is not
enough for me to turn into an investment
thesis. I need additional details in order to
consider this a high-conviction idea.
Unfortunately, as it is now, I can't use this
research"

12. EMPATHY MODELS
TELLING A TRADER/PM THEY MUST OBEY
RISK GUIDELINES:
"John, you know we value you as an
investment professional. We appreciate the
returns you've given us and the expertise that
you brings so far. However, I have to tell you
that you have to comply with risk parameters.
It endangers not only your own portfolio but
the fund when you don't obey these
guidelines. We value you as a professional, but
in order to perform at your best you have to
comply with these parameters"

13. EMPATHY MODELS
DEMOTING/REMOVING
ALLOCATIONS/FIRING A TRADER/PM:
"John, I fully appreciate the value that you've
given us so far. I consider you a valuable
investment professional, and I understand
how demanding and stressful the job is, to
earn even reasonable returns. You may be
angry at me for telling you this, but
unfortunately we have determined that things
aren't working out, and unfortunately we have
to decrease your allocation/ask you to go back
to analysis only/ask you to leave".

14. EMPATHY
ALL MODELS HAVE SOME COMBINATION OF
THESE COMPONENTS:
- STATING YOU UNDERSTAND WHAT THEY
FEEL OR ARE GOING THROUGH;
- ANTICIPATING OBJECTIONS TO DISARM
THEM;
- REINFORCING WITH A
STANDARD/JUSTIFICATION IN THE END;

15. TASK CONFLICT AND
RELATIONSHIP
CONFLICT
TASK CONFLICT: HAVING A PROBLEM WITH
AN IDEA/CONCEPT/ELEMENT
RELATIONSHIP CONFLICT: HAVING A
PROBLEM WITH THE PERSON
THE GOAL: HAVE ZERO RELATIONSHIP
CONFLICT AND ALL TASK CONFLICT
THE CULTURE OF THE FUND/FIRM PLAYS A
BIG ROLE IN THE DISTRIBUTION OF THESE
CONFLICTS
- CREATING A CULTURE WHERE CONFLICTS
ARE WELCOME AND CRITICISM IS
CONSIDERED FRIENDLY WILL FOSTER NO
PERSONAL PROBLEMS;

16. ALIGNMENT WITH
CULTURE/CANDOR
USING THE FUND/FIRM’S CULTURE TO JUSTIFY
CONFLICT AS A PROCESS, NOT A PERSONAL
ISSUE
BESIDES THIS, POSITIONING ANY CONFLICT
AS AN HONEST, CASUAL FEEDBACK FOR THE
BEST OF THE OTHER PERSON ALSO HELPS
IMPROVE THEIR REACTION.

17. CONCLUSION
APPLYING THE ETC MODEL CAN HELP
GREATLY REDUCE CONFLICTS
THE KEY ELEMENTS ARE UNDERSTANDING
THE OTHER SIDE’S POSITION, ALIGNING WITH
THE FUND/FIRM CULTURE AND
DE-PERSONALIZING THE CONFLICT

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19. THANK YOU
VP EXECUTIVE COACHING
SERVICES
CONTACT
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