[ I N D E P T H | B E S T I N V E R ]
it needs a lot of hard work before anything starts to make sense .”
Coverage and juniorisation The trading desk does not automate much trading activity as they mostly trade large orders with multiple day ’ s volume . Like many buy-side traders , the duo strives to add value on every single transaction . Lower nominal trades for smaller funds often present opportunities for the pair to considerably reduce implicit costs by choosing the right strategy , which may differ day-to-day .
“ For smaller trades , automation can be tricky when we see the liquidity structure changing constantly ,” Iglesias adds . “ We are all aware how
" It is the art behind adapting our strategies to better approach liquidity that should make us unique ."
GUSTAVO IGLESIAS , EQUITY TRADER , BESTINVER the focus on both research and liquidity has moved away from the smaller companies . We understand the challenge local brokers are facing . But at the end of the day , there is a lot of alpha in that local expertise . They may find that unique liquidity that will save the day for us as traders . We place a huge value on the local brokers that we have .”
Brexit has presented further coverage challenges for both traders . As a relatively small asset manager based in Spain , if the traders are speaking to a broker in Madrid that may not be able to cater to their needs , they often turn to the London desk for additional support .
However , as market structure
54 // TheTRADE // Summer 2021