Working closely with our portfolio construction team, our traders are responsible for the final implementation of investment ideas. Traders are expected to add value to overall performance with error-free trading and superior execution skill. We view trading primarily as an exercise in risk management in that there can be tremendous downside if you make mistakes: small mistakes can potentially cost our clients a lot of money; large ones can put us out of business. We therefore go to great lengths to ensure that mistakes have a low chance of occurring. If they do, ideally they are detected quickly and processes are put in place to limit their chance of recurring.
Consistent with our belief in individual accountability, the majority of each trader’s year-end compensation is determined by his or her success in not making mistakes. We also have analysts who focus exclusively on trade analysis and making recommendations to minimise trading mistakes. The balance of trader compensation comprises the individual’s value-added contribution to the trading and portfolio management process.
Orbis operates three Bermuda-based trading shifts – one each for trading hours in the Americas, Asia and Europe/Africa – which are staffed at all times when major global markets are open.