When it comes to the ever-evolving relationship between trader and portfolio manager, it’s a symbiosis which is not just desirable, but fundamental, said expert panellists speaking at the FILS conference on Wednesday.
Addressing the friction points between the two camps – often spoken about across the trading sphere – the panellists appeared to agree that some disgruntlement is arguably par for the course. However, in the pursuit of success, this is a price both sides appear more than willing to pay.
One panellist explained: “There are a lot of people that have different skills and are looking at the same objective through different lenses […] we need to have valuable discussions, and then it can be that someone is stepping on your toes, but I would rather have that than not have a good discussion.”
Another panellist added: “We’re all adults and I think we all have one common goal which is to perform. We all want the best outcome and to achieve and we all want to do what’s best for our client base.
“If we’re not doing that, we don’t have a client base, we don’t have a job. It’s as simple as that. That collaboration and communication is essential.”
Read more: Trader and PM relationships: A holistic approach is key to success
Expanding on this, addressing the role that technology plays in the relationship between trader and portfolio manager, the panellists highlighted that the bi-directional link between the two is “essential”.
One expert explained: “[Traders] need a window into what is out there, what is available – while traders can source information from sources like IB chats etc. portfolio manager’s offer a window into the world when it comes to who’s doing what – where, when, and how.
“It’s important to use the tools available in order to be a true information provider.”
Indeed, as the panellists highlighted, while PM roles are vital, alone the role is one made up of ideas – where traders execute notions.
Speaking to this relationship and the importance of respecting the approach of both sides, one expert asserted: “It must be a two-way dialogue. It doesn’t happen often where a trader doesn’t already know what the PM wants to do – it’s part of the traders’ job to try and get in front of it.”