CEO MONTHLY / AUGUST 2017 33 out, often close to market turns. Mercury Forex waits, and if a given level is not reached, the trade is not initiated. We never chase the market. A key motto of the firm is: ‘Plan the Trade, Trade the Plan’. I am very proud of what I have created at Mercury Forex, indeed it is a continuing and huge success story and has been for over 20 years, adding significant value to clients in a unique way. We don’t advertise the firm’s business model or chase clients, but our investors usually come to us having been recommended by their trusted contemporaries, which is the way l like it. I have developed a working environment that suits me and have extended it to the rest of my team - to allow them to operate at their highest potential in their areas of expertise by - creating a culture of confidence, patience, discipline and success. I revel in the fact that Mercury Forex is ‘different’ from the herd and does not follow convention. Certainly, the firm’s longevity, performance and deep relationships with our investors are testament to that. As with any firm, one of its most valuable resources is its employee’s, so I am very proud to have both the support and loyalty of my team. Name: John Birkins Email:
[email protected] Web Address: mercuryforex.swiss Address: Churerstrasse 135, CH- 8808 Pfäffikon, Switzerland group think and ‘white noise’ on trading floors can foster herd mentality amongst traders as opposed to reliance on individual analysis. The ability to focus solely on the markets and step away from the requirements of corporate management and politics, was a relief. I realised that whilst I was good in those bank roles, my real skill was in developing and refining contrarian trading strategies. The business was initially setup in London, but in 2005 I decided to move to Switzerland, basing the business in Pfäffikon SZ, close to the Lake of Zurich. This move bought a new impetus to the business, with the change of environment. I found moving away from the noise of London, to the relative quiet of the Swiss mountains, was an incredibly rewarding experience for me from both a personal and business point of view. I have realised that managing the noise, both from a business and an investment perspective, is crucial. Reducing the amount of unhelpful commentary, for instance, reduces the risk of group think amongst people. From a management point of view, avoiding unwarranted distractions, and especially those that create them, affords a greater clarity of thought. The move to Switzerland, creating Mercury Forex AG and accepting Swiss Financial regulation, all helped the firm to focus on our core strategy – the preservation of capital and exceptional risk management. However, it’s always important to listen and for that reason I have created an investment committee, made up of long-term stake holders in Mercury Forex. The regular communications with this group are vital, providing a necessary sounding board for ideas, as well as bringing new perspectives and ideas in a controlled forum that allows calm and a reasoned discussion. The environment for my team of portfolio managers is very much in line with this overall approach. I encourage portfolio managers to work on their own, using the programmes and analysis created by Mercury Forex, alongside their own analysis. This acts to reduce group think, but constant communication with me creates that sounding board for them that my investment committee provides for me. The business model at Mercury Forex, allows them to manage their own lifestyles, in the same way that I manage mine. Tension, nervousness and uncertainty, are all poor traits for traders. In fact, as a firm we rarely perform at our best in any endeavour when we feel like that. Instead, it is my belief that doing everything possible, both for myself and the team, to feel relaxed, confident, focused and well informed, are critical for the peak performance of all the staff here. I have been fortunate, that I have garnered an increasing number of investor clients, some of which are the original investors from 1995! Over time, I have a strong belief that the mark of a good business is providing the correct product to the right client, at the right price. The quality of the product at Mercury Forex is shown in black and white; the track record does not lie. The ability to not only retain investor clients over such a long period, but to gain so many new ones, shows that the pricing and especially the performance must be attractive! What I have realised, is that Mercury Forex does not work for every possible investor. We have never engaged with retail investors, for instance. We deal only with significant institutional investors, typically with the principal holder of the funds, as opposed to other asset managers. It is important that an investor understands the way we work, that is need for focus and calm reflection, whilst at times being able to add value to the thought process. In the same way that investors assess whether an asset manager is suitable for their needs, Mercury Forex looks carefully at whether an investor is suitable. For that reason, I view our investors as partners - we provide them access to an opportunity that is unique in the world of investment - they provide us capital and support. It is impossible to manage financial services business in the modern day, without significant infrastructure and support processes. We use state-of-the-art technology, to allow the concept of the ‘remote office’ for portfolio managers to function. I have built a strong team of middle and back office staff, as well as legal and compliance support. We have strong relationships with auditors, lawyers and especially, regulators. I believe that strong engagement with regulators is important, not simply to remain compliant, but also to be part of the discussions around changes in regulation going forward. Being part of the dialogue is an ongoing way to manage regulatory risk. Generally, I spend a significant amount of time ensuring this element of our structure is sound. Any asset management business is as strong as its foundations, so the firm’s infrastructure is our bedrock. The advantage of having created and run a successful business for so many years, is it affords us the opportunity of patience. Typically, bad decisions are made when under stress to make a call, or have time or performance pressure imposed by outside influences. Longevity and superior performance allows Mercury Forex to avoid this, by employing our trading style of focus and analysis, underpinned by strong discipline. This means we do not need to chase returns; rather we can allow the trade to come to us. Over eager or pressurised traders can have the right view, but end up rushing to enter a trade at the wrong level and are squeezed A Continuing Success Story g