Making Sense Trading Insights: Data in the discretionary investment process with AKO Capital’s CEO
Jun 20, 2025
Patrick Hargreaves, the CEO of AKO Capital and PM of the AKO Capital Global Fund, dives into the firm's quality investment philosophy and the importance of identifying 'patterns of quality' in companies. He explains how specialized teams in market research, forensic accounting, and data science work alongside analysts to enhance investment decisions. The discussion also highlights the role of machine learning in investment processes while emphasizing the enduring significance of human judgment. Hargreaves shares insights on long-term strategies and learning from past mistakes.
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Focus on Quality and Industry Structure
- AKO Capital focuses on investing in high-quality companies that sustain superior returns on invested capital long term.
- This quality focus aligns with stable industry structures like duopolies or mini monopolies with strong competitive advantages.
Detecting Quality Erosion Early
- Quality company characteristics degrade gradually, not suddenly, which allows early detection of erosion.
- AKO has a 'boiling frog catcher' system to detect when quality signals weaken and reassess investments accordingly.
Leverage Specialist Support Teams
- Use multiple specialist teams in market research, forensic accounting, behavioral analysis, data science, and sustainability to support analysts.
- These teams provide unique, detailed insights beyond basic financial metrics to inform long-term investing decisions.
