Young Professionals: Herman Henken (Providence Capital)
This special was originally written in Dutch. This is an English translation.
The world in which investors operate has become more complex and unpredictable in a short space of time. Geopolitical tensions, technological developments and structural transitions are increasingly shaping the agenda. Financial Investigator asked young professional Herman Henken, Associate Investment Manager at Providence Capital, how he experiences these developments in his day-to-day work. He wrote this piece in a personal capacity.
By Daan Nijssen
Which international development currently has the greatest impact on your daily work, and how?
‘International developments influence my work on a daily basis, with technological advances being the most decisive factor. Technology not only influences the markets in which we invest, but also the questions that clients ask and the way in which we structure our investment process.
On the client side, I am seeing a sharp increase in questions about topics such as artificial intelligence, digitisation and large technology companies. At the same time, global stock markets are becoming increasingly concentrated in a small group of large tech players. A limited number of companies determine a large part of the index return. This offers opportunities, but also increases vulnerability when performance depends on a few names. Changes in sentiment or regulations can quickly affect returns. That is why we consciously look beyond just the biggest names and focus on diversification. By spreading portfolios across sectors and themes, we aim for greater stability and more consistent long-term returns.
When performance depends on a few names, this offers opportunities, but it also increases vulnerability.
I have also noticed that technology is significantly changing my daily work process. When analysing ESG data and testing data providers, more and more AI-driven solutions are coming onto the market. These are innovative, but often still expensive and not always more reliable than established players such as Morningstar Direct. At the same time, AI helps me in my work by enabling me to understand and apply new systems more quickly, allowing me to master programmes such as Microsoft Power BI, Morningstar Direct and Bloomberg Terminal more quickly and use them more efficiently for analyses and customer queries.
In short, technology influences both where we invest and how I do my work.’
Read the original special in Financial Investigator magazine