Commentary

Momtchil Pojarliev
Traders Magazine Online News

Some Like It Hedged

BNP Asset Management's Pojarliev discusses a variety of options to address foreign currency exposures. Although there is no single best-practice solution for addressing foreign currency exposures, institutional investors have three main choices, he says.

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January 1, 2013

Prepare Deeply, Act Quickly

By Mary Schroeder

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Being patient means that, for instance, if she knows there's a seller for a very illiquid stock, "there are chances we won't trade until I find that seller." She would know there is a seller because "you can feel it in the stock. The health care world is very small, and we know what brokers are trading what stocks. We're diligent about making sure we know what's going on in a stock."

Heidelberger says she "micromanages" her orders. "If I have an order to buy 100,000 shares of something, I'm going to watch every tick," she said.

"Knowing which broker has which strengths in which stock-so much of this business is being alert and knowing what you're trading and who you're trading with," she said.

She added that "We're lucky in health care. Most of the people who have been doing it have been doing it for a very long time. It's very helpful when people understand the stocks that they're trading particularly in health care. But it's my job to make sure I get the best price on something. And I want to have control over that."

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"We really care," she said. "It's not a 100 to trade and I better just get 25 on the tape somehow," she said. "It's where and how am I going to do that? Where and how am I going to find the right liquidity at the right price?"

The firm uses dark pools such as Liquidnet, BIDS Trading and BlockCross, "so if there is a natural out there it will pop up and hopefully we can get it to execute," she said.

Deerfield uses algos sparingly, says Heidelberger. "We get lots of information from the brokers in terms of management meetings and corporate access and we need to be able to pay them for that service."

Heidelberger values her partnerships with her brokers. "We strive to have relationships with them," she said. "The end game is for everybody to make money and for everybody to be happy. We want to compensate them for the services that they've given us and we don't want to do it in a manner that's less than the sum of two parts."

It's challenging to keep abreast of all of the information on the stocks, including research notes and chat rooms, she said. "We need to know our stocks,'' she said. "That's part of the reason I get in at 6:30 a.m."

Heidelberg is also responsible for trading debt for the firm. "It's a challenging environment and there's not a lot of liquidity in the health care debt issues," she said.

Keeping her awake at night is finding the right balance between her job and her children, ages six and seven. "I love my kids and I love my job and finding the balance between both of them so I can give 100 percent to both can be challenging," she said.

Besides getting in to the office at the crack of dawn, she often goes out for business dinners. "It's a lot of juggling," she said. "I'm lucky that I have a very understanding husband who helps to pick up a lot of the load. But it's definitely an issue. If your kid is sick at night and you have to get to work at 6:30 in the morning, it's not always a fun thing."

 


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