The Alternative Data Podcast The Railpen Episode
Mar 22, 2025
Richard Dudley, Senior Portfolio Manager at Railpen, shares insights from his extensive experience in running systematic equity strategies. He discusses the unique dynamics of managing £7bn within a tight-knit, 10-person team. Richard explains the differences between defined benefit and contribution pensions, the challenges of integrating alternative data, and how ESG factors play into investment decisions. He also highlights the importance of ethical alignment when managing pensions, ensuring member interests are prioritized.
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Railpen’s Uncommon Pension Structure
- Railpen is a large UK pension fund managing about £35bn with £20bn in liquid public markets and the rest in LDI and private assets.
- The firm remains unusual because it's still open as a defined-benefit scheme with active DB participants and employer guarantees.
Small Team, Big Mandate
- Richard's team manages roughly £7bn inside Railpen as a ten-person systematic group covering global equities and launched long-short and CTA products.
- The systematic team is rare within UK asset owners but mirrors in-house models seen at larger global asset owners.
Multi‑Disciplinary Compact Team
- The team combines four quant developers and six PM/research roles from diverse technical backgrounds like physics, neuroscience and econometrics.
- That mix supports broad research responsibilities across data, code and product design.