CURRENCY RESEARCH
BY: MAHA KHAN PHILLIPS • PROFILES BY: STUART NEWMAN
MOMTCHIL POJARLIEV, CFA
I
f you want to research currencies, you’ll have to have a broad
knowledge of markets and of world events, say head hunters.
Currencies are aff ected not only by fi nancial events, but also
Title: Head of Currencies
by political ones, and a host of other factors. Despite this, most
Current employer:
currency investing is quantitively-driven.
Hermes Fund Management
“Most fi rms are model-driven, but there’s nothing in the
Previous employers: Invesco;
models that is so spectacularly out of reach that you would have
Pictet & Cie
to have a PhD in math to work in currencies. If you are a good
University: Vienna University of
Economics and Business
macro type economist, then it might be of interest,” explains
Administration; University of Basel
Arun Muralidhar, chairman of Mcube Investment Technologies.
Degrees: Masters in Business
He believes that candidates with backgrounds in math, politics or
Administration; PhD in Financial
science would be qualifi ed. “Th ere is a fair amount of qualitative
Econometrics
overrides to the models, because models are only as good as what
Professional qualifi cations: CFA you qualitatively put into them.”
Once models are set up, analysts must make sure they work
What attracted you to this career path? eff ectively. “You have to make sure that the recommendations
When I was in high school I was interested in mathematics, that are coming out are consistent with the data. Unless there is
art and gambling. I was considering three different career something really unique, you go ahead and execute those
paths: mathematic lecturer, writer and professional
transactions,” explains Muralidhar.
Cg
gambler. Fortunately, I realised that being an investment
risk taker combines all these three interests.
XAVIER PORTERFIELD
What are the major challenges you face in your position?
Title: Global Head of
The ancient Spartans had a simple law: “Never retreat,
Research Sales
never surrender”. As a risk taker you have to know when to
Current employer: FX Concepts
stay your ground (and double your positions), but also to
Previous employers:
know when you are wrong and cut your losses. It is
IDEA Global Markets
extremely challenging to outsmart the market.
University: University of Kent
Degrees: Bachelors in History
Are there certain skills you would consider useful for
Professional qualifi cations:
your job? CFA Level II candidate
Having strong analytical skills, but also being an artist and
having a love of gambling are essential parts of being a
What attracted you to this career path?
good risk taker.
I was intrigued with how the City works, the fl ows of capital upon
which the trade and economies turn
How do you think the role you’re in now will change over
time?
What are the major challenges you face in your position?
Currently, people are still debating if currencies are an
The greatest challenge is to express the quality of perseverance and to
asset class. This is the wrong question. From my
stay on purpose through the vagaries of fortune. The 13th century
perspective, currency management is a type of hedge fund
Buddhist monk, Nichiren Daishonin, wrote “A truly wise man will not be
strategy, like ‘market-neutral’ or ‘statistical arbitrage’. In
carried away by any of the eight winds: prosperity, decline, disgrace,
the future, currencies will be clearly established as an
honor, praise, censure, suffering and pleasure. He is neither elated by
alpha source.
prosperity nor grieved by decline. The heavenly gods will surely protect
one who does not bend before the eight winds”
Do you have advice for someone intending to pursue the

same career path?
Are there certain skills you would consider useful for your job?
It is a demanding job, so you have to really love it if you
Being able to empathise with people is an essential requirement to
want to stay in it over the long term.
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