[REPLAY] Christina McGuire: From Doctor to Emerging Market Equity Fund Manager - A German Tale

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It’s difficult enough to train to become a doctor and then practice in some emerging countries with fragile health systems like Papua New Guinea. But then to switch tack completely, give all that up, win a place at Harvard Business School and join Goldman Sachs in asset management before going on to launch your own fund in emerging markets, may be considered brilliance or heresy, particularly when you come from Germany, a country that reveres technical expertise and is less enthusiastic about the merits of finance.

So in this conversation I am delighted to unravel an unconventional journey and welcome Dr Christina McGuire, CEO of Elephant Asset Management, as our guest. We discuss her upbringing and German attitudes to finance, before touching upon her medical journey, her decision to go to Harvard Business school and then join Goldman Sachs.

She discusses working and investing in China, the skills taught and culture encouraged at Goldman's, before she explains her decision to go it alone. She describes the investment approach of her firm, Elephant Asset Management, where she manages a concentrated, stock-specific, emerging market equity fund. She explains her philosophy and style, detailing geographic, sectoral and company disciplines as well as the significant opportunities created by the post-Covid world for her domestically-focused companies.

She describes the due diligence process, the need to eye ball CEO and CFOs and why she believes company visits and sitting in the staff canteen of investing companies are great ways to gauge culture, and sense the mood. Christina also explains why the S&G in ESG are significantly more measurable in the countries in which she invests.

Finally Christina talks about how women should really think about asset management as a career, and offers some other great advice for young people thinking about their futures.

Due to the similar themes discussed in our latest episode release (with Robin Wigglesworth, Global Finance Correspondent at the Financial Times), we're pleased to be re-releasing our discussion with Christina McGuire. Like Robin, she also shares some fascinating arguments in the active v passive debate.

The chat is a topical one too given the current buzz around the transformative 2021 German election. In the episode, Christina shares her thoughts on the structural strengths of the Europe's largest economy and examines why its finance sector remains relatively underdeveloped. She also explains why she believes Angela Merkel has done a "remarkable job".

This interview was originally recorded in August 2020.