The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
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Hynes: Biopharma must price rare diseases high and common diseases low
“I'm a big believer that this industry needs to price for the risk they take and the innovation they take, and they need to earn a return over the life cycle of their patents. And if you are going after a very large disease, such as cholesterol or heart failure…”
Hynes: Lone-wolf investors do not belong at Wellington Management
“If someone wants to be a lone wolf and doesn't want to collaborate, they shouldn't be at Wellington. It's not the place for them. There are many very successful investors who probably are successful in their own right, but we wouldn't benefit from them and the…”
Hynes: Wellington does not cap or predetermine partnership size
“The size of our partnership will be determined by the amount of people that are having that kind of impact that allows us to grow, add capabilities, serve our clients in all parts of the world. We don't have a determined size.”
Hynes: Wellington partnership economics must beat launching an independent firm
“Our private partnership, the ability to become a partner and be an owner in the firm, and the economics have to work out that they're equal to better than setting up your shingles someplace else.”
Hynes: Wellington investors launched hedge funds for strategy expression, not compensation
“I think we had interest in running hedge funds in longshore portfolios because we had just great investors who really understood their sectors. They were looking for avenues to express the whole sector. I don't think it was really because of the compensation. …”
Jean Hynes: Clients invest in privates solely for differentiated returns and illiquidity premium
“The only reason clients invest in privates is because you give differentiated returns. They take the illiquidity premium.”
Jean Hynes: Wellington will package private market boutiques into multi-strategy platforms
“I think we'll do it in the private space. You take all those small boutiques where people really spend their time and can optimize, but then we can scale them Through platforms and vehicles.”
Hynes: Market concentration will broaden, favoring active managers over index funds
“I think what will benefit active management is that Concentration broadens. I'm a big believer that those seven companies will be successful only if the benefits broaden to the economy around the world, and so I would suspect that you're in an environment in t…”
Hynes: Active therapeutic innovation areas have expanded from 15 to 40–50
“So if I look at over my career, there's probably been 15 areas of medicine in any rolling two or three-year period that was changing, and now there's probably 40 or 50 areas of medicine, so there's a lot more change happening in the sector than there has been …”
Hynes: Overly narrowing healthcare analysts' focus blinds them to 10-year industry changes
“The reason why 12 is enough is it's a very long cycle industry. So it is an industry that is, even though there's a lot of change happening, that change happens over 10 years to bring a drug to the market. And so we want to make sure we're covering all the com…”
Hynes: Wellington candidates undergo 20 to 30 interviews before joining
“One of the things they said is by the time you're done with these 20 or 30 interviews, you actually are ready to join.”
Hynes: Wellington rejects candidates who require star status
“It goes back to the fact that Wellington is not a star culture. So that goes back to who we hire, If someone needs to be a star, they're not going to be a good fit here.”
Hynes: Vanguard's philosophy is low cost across active and passive, not just indexing
“If you listen to Vanguard and what their philosophy is, they're not a passive company. Their philosophy is to be a low cost, both on the active side and the passive side, and there's a place for both passive and a place for active.”
Hynes: Sizing thematic insights across multi-stock baskets reduces risk
“Personally love when I can have an insight and I can do it in four or five or six stocks. So I might be able to do it in a big company. If you go back over a decade, if implementing a bet on diabetes, you could do it with big companies, you could do it with sm…”
Hynes: Investors must trim positions when valuations outpace timelines, even if liked
“Knowing at any point in time what that is worth. So there's a long time before this drug makes it to the market, and if it makes it to the market, it's going to be worth this, and sometimes it can get ahead of itself, so being very disciplined about scaling ba…”
Hynes: Wellington tracks sector inflows and IPOs instead of competitor positioning
“I guess we don't spend a lot of time looking at how our competitors are positioned. We try to be extremely independent. But saying that, what we do look at is what are inflows into sector funds? How many IPOs are happening? What's the inflows into the passive …”
Hynes: Rising data and IT costs threaten mid-sized active asset managers
“Differentiated investment insights about the world will still matter, but you're going to need to invest in IT, and you're going to need to invest in science to augment that art, and so how do mid-sized companies continue to make those investments? I know they…”
Hynes: Elongating the investment cycle is Wellington's competitive advantage
“People are very short-term. So it's not a pet peeve in the sense that I can ignore most of that short-termism. I mean, that's, I think, one of our competitive advantage, that we can elongate our cycle.”
Jean Hynes: Wellington candidates now undergo approximately 30 interviews
“I only had two interviews, not the typical 30 that we have now.”
Hynes: Wellington's $1.3T Platform Is Split Across Roughly 60 Teams
“So in our 1.3 trillion dollars, it really is approximately 60 teams across equities, across research sector teams, across fixed income, long short strategies, and now private strategies. Most are small teams of anywhere from two or three to up to 10 people tha…”
Hynes: Wellington manages around 250 products across 60 investment teams
“We have more products than the average asset manager. We have about 250 products and with 60 teams.”
Hynes: Wellington uses an oversight group to investigate alpha outliers
“We have an oversight group at the firm that looks across all of the investment platform and says, how is the whole investment platform? Are there any outliers? Are there outliers that are doing too well? Are there outliers that are doing not too well? And then…”
Hynes: Wellington turnover is under 10% overall and lower for investors
“The turnover in the organization overall is under 10%, and turnover of investors is lower than that.”
Jean Hynes: Wellington Management is now open to hiring intact investment teams
“Five years ago, we might say we were only going to hire a person and then build a team around them. We're more open to hiring teams.”
Hynes: Wellington is the largest sub-advisor in the world
“We're the largest sub-advisor in the world, and so I would say if you think about what are strategic partnerships, those are strategic partnerships on manufacturing and distribution.”
Jean Hynes will stop managing money to focus on her CEO role
“I have only a few more weeks of managing money and the luxury of sitting down and reading a research report and just absorbing things or coming to a close.”
Hynes: Long-Short Strategies Will Become a Bigger Part of Wellington's Business
“I think we have every right to be a much bigger player in long short. Investing. We have been in it for 30 years. We've spent quite a bit of time in the last five of investing in that business, and so I suspect that will become a bigger part of our business go…”
Hynes: Healthcare investors need broad coverage to identify where change is happening
“The key then, which is what I really believe I learned over time, is learning how to focus. So having that breath, and then knowing where change is going to happen, and then Using your research abilities to really focus in on that change, and then get all the …”
Hynes: Roughly 40% of biopharma R&D is allocated to oncology
“About 40% of the Industries of R&D now is going to oncology.”
Hynes: Wellington manages $120B in healthcare, with team directly managing $65B-$70B
“Across all the Wellington products, it's about a hundred and twenty billion. So it's a large part of our equity assets. And on the team, we manage about 65 to seventy billion of those assets.”
Hynes: Wellington is structured as a federation of 55 distinct investment boutiques
“And the unique thing about Wellington is that it's a federation of boutiques. So We have about 55 different boutiques across equities, fixed income, multi-asset, research platforms, quant, alt-risk premia, so those are our platforms, and it's part of the globa…”
Hynes: Wellington provides retired partners future economics to ease succession
“There is some future economics for retired partners, and the formula of that is why it makes it so easy for the partners to elect new partners and partners to leave.”
Hynes: Portfolio Turnover at Wellington Typically Ranges from 15% to 30%
“So my turnover in my portfolios tends to be 15 to 30%.”
Hynes: Wellington is a rare trillion-dollar privately owned asset manager
“It's very unusual to have a trillion dollar asset manager that's also privately owned. There aren't that many of us.”
Hynes: Wellington is investing heavily in a new Investment Science group
“So one of our big areas of investment is in, we have a new group form or group coming together called investment science, and so that's a big area of investment for Wellington as a whole, and the goal of that group would be, when I think about all of those 55 …”
Hynes: Wellington manages over $1T, up from $50B when she joined
“We're over a trillion dollars. When I started, we were fifty billion.”
Hynes: Wellington will expand globally, into alternatives, and into privates
“I think Wellington 10 years from now will be more global... I think we will have more alternative skills... I think we will be, in maybe third, we will have more of our assets in privates.”
Hynes: Wellington evaluates staff annually using 360 feedback from 10-20 peers
“Every year we have a feedback mechanism where you will have anywhere from 10 or 20 people that you work with most closely provide feedback on you. Both qualitative feedback and quantitative feedback on your skill In your recommendations over the past year, but…”
Hynes: Wellington uses a nine-month review process to elect new partners
“It's a nine-month process, a very intense, robust process to get feedback from the partnership, to get feedback from our line management on who they would nominate for partners, and then the re-managing partners are responsible for nominating partners that wil…”
Jean Hynes interviewed 30 healthcare and finance CEOs to prepare for role
“And so I did a series of about 30 interviews with CEOs of healthcare companies that I had known for a long time, and financial companies, and some of our clients, and as I started those, I got to ask the same question. What do you regret, and what did you thin…”