Senior Equity Trader

Location
Minneapolis, Minnesota
Salary
Commensurate with experience
Posted
15 Dec 2021
Closes
13 Feb 2022
Job Function
Trading
Industry Sector
Asset Management
Employment Type
Full Time
Education
Bachelors

POSITION DESCRIPTION

PEREGRINE CAPITAL MANAGEMENT

SENIOR EQUITY TRADER

 

POSITION OVERVIEW

Peregrine Capital Management, LLC (Peregrine) is an employee-owned investment management organization that has been offering a variety of equity investment styles for four decades. The firm is seeking a Senior Equity Trader to work with all the strategies and portfolio managers.  This role will have direct day-to-day execution responsibilities in addition to other trading-related tasks, as identified below.  The ideal candidate will have broad knowledge of and experience with domestic equities of all capitalization sizes. The successful individual must demonstrate a collaborative approach to equally learn from and impart to colleagues at all levels of the firm.  The role is located in Minneapolis and will report to Hema Nealon, CFO and COO. 

FIRM PROFILE AND HISTORY

Founded in 1984, Peregrine is an employee-owned investment management firm offering three primary styles, Small Cap Growth, Small Cap Value and Large Cap Growth, which support seven related investment strategies.  Over the years, Peregrine has been known for the continuity of teams, style integrity, outstanding client service and solid investment performance. The firm has been owned by its principals since 2016, when they bought the business from their former parent, Wells Fargo.  There are currently 28 employees. 

ASSETS UNDER MANAGEMENT

With approximately $7 billion in total AUM and AUA, the firm espouses an actively managed, fundamental, research-driven investing approach.  Large Cap Growth assets represent approximately $2.8 billion, small cap growth, $2.5 billion and small cap value, $1.6 billion.  The vast majority of the firm’s clients are represented by separately managed institutional mandates.  They include corporate defined benefit and defined contribution, public fund, Taft Hartley, endowment and foundation, family office, insurance, sub-advisory and offshore clients. Additionally, the firm manages some HNW accounts via RIA relationships and offers services to model platforms.

PRODUCT APPROACHES

LARGE CAP GROWTH

Peregrine’s large cap growth team of 3 portfolio managers believes that over the long term, earnings growth is the primary driver of total shareholder returns. They manage the portfolio as a single diversified growth company producing an underlying portfolio earnings growth rate of at least 12% and translating that into strong secular absolute and relative returns.  Opportunities for growth determine their investment decisions, not a benchmark.

Their process identifies companies sustaining a minimum 12% secular earnings growth. Characteristics include:

  1. High unit volume growth - the ultimate litmus test
    • Recurring revenue streams
    • Network effects
    • Organic growth
    • Large addressable markets
  2. Sustainable competitive advantages
  3. Substantial ability and opportunity for reinvestment
  4. Cultures and incentives for growth and innovation

The team also manages a select mid-cap growth approach.

SMALL CAP GROWTH

Peregrine’s small cap growth team of 5 portfolio managers uses a research process that uncovers information gaps characterized by material divergences in underlying fundamentals from a company’s stock price. These small, rapidly growing companies trade at attractive valuations with the potential for dramatic stock price appreciation.

Information gaps fall under two internally defined categorizations: 

Discovery Phase:  Discovery information gaps requires evidence of high growth (long-term EPS growth greater than 20%) that is not captured by consensus thought or reflected in valuation. This rapid earnings growth will attract the attention of investors who, in turn, reward execution with increased valuation to deliver strong returns.

Rediscovery Phase:  Rediscovery companies are characterized by near-term earnings acceleration. These companies are expected to provide a minimum of 40% EPS growth over the next twelve months, which acts as the catalyst for a reemergence as a high growth company. Additionally, within Rediscovery, the team looks to identify acquisition candidates in consolidating industries. 

The style also manages a SMID-cap growth product.

SMALL CAP VALUE

Peregrine’s Small Cap Value team of 3 portfolio managers employs a proprietary valuation process to identify the least expensive stocks in each sector, which results in a candidate pool of 175 names. To discern true value from the merely cheap, the team conducts extensive fundamental research in search of one of their five Value Buy Criteria:

  • Resolvable short-term problem
  • Catalyst for change
  • Unrecognized assets
  • Fundamental undervaluation
  • Take-over potential

The presence of those Value Buy Criteria increases the likelihood that an inexpensive stock will return to a state of fair value and outperform its peers.

Portfolios are fully invested in 90 to 110 holdings with no position exceeding 3.5% in weight. The portfolio is always diversified across all sectors at all times.  A SMID-cap version of the strategy is also available.

PERSONNEL

The trading team consists of two individuals who share responsibilities for all strategies and portfolios.  As one of the two has announced retirement plans, this role will be a replacement for a senior trader.   The two traders support ten portfolio managers across the three product teams.

POSITION SPECIFICATIONS

This trader will execute domestic equity trades as directed by the portfolio managers.  Approximately 95% of the volume will be comprised by small cap stocks, with the balance large cap.  The trader will be expected to use all resources and relationships to determine the way to obtain best price and outcome for each trade while also fulfilling client and firm mandates and obligations.  The trading team is expected to stay up to date on methods to deliver best execution for its client base while keeping pace with ongoing growth, addition of new investment strategies and market changes.

A summary of responsibilities will include:

  • Execute trade workflow, employing various broker relationships in addition to dark pools, program trades, algorithmic trading, and other trading channels.
  • Develop and maintain trusted relationships with brokers and evaluate their level of service, cost and execution on an ongoing basis.
  • Continually evaluate the trading approach and technology relative to industry best practices. 
  • Participate in semi-annual review process to discuss and evaluate commission rates, CSAs, soft dollars and total trade costs.
  • Meet quarterly with Abel Noser to review a trading costs analysis.  Manage the relationship with Abel Noser on an ongoing basis.
  • Manage commission recapture, step-out and soft dollar volumes against requirements, coding appropriately and reconciling daily.
  • Maintain an awareness of the various client account mandates and restrictions, despite them being entered into the Order Management System.
  • Review order management policies and practices relative to industry best practices.
  • Develop and maintain excellent relationships with the portfolio managers for optimal communication. 
  • Participate in client, consultant and prospect meetings, as necessary.  Serve as the face of the firm’s trading ability.
  • Manage model delivery platforms and maintain trade logs to ensure accurate rotation.
  • Develop and maintain excellent relationships with operations personnel to easily review and resolve any trade or settlement issues that arise.
  • Participate actively in Disaster Recovery and Business Continuity Planning with regards to all aspects of trading.

CANDIDATE REQUIREMENTS

Peregrine is seeking a collaborative leader with knowledge of and experience in setting best trading practices and evaluating current and changing options.  The ideal candidate will possess the following:

 

 

  • 10+ years of equity trading experience, with a focus on small cap U.S. equities.  Leadership of a trading desk would be particularly desirable.
  • Experience with institutional separately managed mandates is required, and experience with pooled products such as mutual funds, CITs, or UCITs is preferred, as is experience with model delivery platforms.
  • Demonstrated knowledge of trading best practices, including use of multiple trading channels.
  • Experience and/or familiarity with EZ Castle, the order management system used, and CTM, Peregrine’s portfolio accounting system, and Portia, a comprehensive investment operations platform.
  • Fluency with Bloomberg and familiarity with Factset.
  • A Rolodex of relationships with boutique investment brokerage firms.
  • Ability to communicate clearly and proactively.
  • Organizational skills and attention to detail.
  • A collaborative, collegial and respectful approach to business.
  • A proactive approach to suggesting and vetting new ideas, whether for trading channels, model delivery mechanics or other. 
  • Willingness to wear multiple hats and be a team player.
  • Degree from an accredited university or equivalent experience. 

COMPENSATION

Compensation will consist of a base, and a discretionary bonus determined by the individual’s performance and company performance.  Total first year compensation will be dependent on the qualifications and experience of the successful candidate.

For further information please contact:

Quanita Haynes; quanita.haynes@peregrine.com

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