[ I N D E P T H | B E S T I N V E R ]
" Due to different interpretations on Brexit , it was as if we were cut off by many and some of the UK desks wouldn ’ t service us as they did before ."
ALEX ROSELLÓ , HEAD OF TRADING , BESTINVER
shifted post-Brexit , Roselló explains coverage from many of the desk ’ s UK broker contacts worsened . There is some confusion among brokers on how best to service European clients post-Brexit and each firm has a different interpretation . This has been detrimental to the desk ’ s important relationships in London .
“ As a European firm we have found difficulties in coverage ,” Roselló adds . “ We previously had a lot of access and valued our relationships with sales traders and dealing directly with the trading desks in London . But due to different interpretations , it was as if we were cut off by many and some of the UK desks wouldn ’ t service us as they did before .
“ This meant we were often having to speak to desks in other European hubs where we didn ’ t have the relationships , and in most cases , with more junior coverage . It doesn ’ t matter very much for asset managers based in the UK because it ’ s seamless , but as a European buy-side house that trades UK and global markets through the UK desks , it has been incredibly tricky for us .”
Despite the London influence , Bestinver remains a Spanish firm with three large domestic funds . Following the merger with Fidentiis , the desk ’ s flow in Iberia has trebled but Roselló points out that the size of the Spanish market remains the same .
With three times the volume in a market that hasn ’ t changed , liquidity has become tougher to find for both traders . But as the new portfolio managers joined Bestinver after the acquisition having not had traders at their former firm , Roselló says the benefits of a centralised buy-side dealing desk have come to the fore .
“ Our new portfolio managers have been pleased and appreciate the implicit costs you can save by having a good trading desk ,” Roselló adds . “ It adds value to them , the funds and the investors . There are technologies being developed that some people worry will one day take over buy-side traders , but we really see technology as empowering , and you must use new technology to your benefit .”
For the two-strong trading team at Bestinver , despite the challenges in coverage and evolving market structure , their goal remains sourcing blocks and liquidity . As they continue to navigate more complex relationships with their brokers and handle the huge uptick in volumes post-merger , both Roselló and Iglesias are rightly proud of their ability to adapt as a team during this period .
“ In our business , it ’ s a constant learning process seeing the markets evolve at the speed of light . As buy-side traders we should learn from each other and be smart about the way we use technology . It is the art behind adapting our strategies to better approach liquidity that should make us unique ,” Iglesias concludes .
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