Kim Arthur of Main Management - The Philosophy and Wisdom of a Six Time Guest on The Weighing Machine

Orion's The Weighing Machine

Today on the podcast, Rusty and Robyn are joined by Kim Arthur, CEO and Portfolio Manager of Main Management. Kim D. Arthur is a founding partner of Main Management, LLC. He currently serves as Main’s CEO and Portfolio manager. In 2009 Kim was recognized by Institutional Investor Magazine as a “Rising Star” of Foundations and Endowments. Kim is a regular speaker at national conferences and was a featured speaker at the Inside ETFs conference in Hollywood, Florida in January 2018. Kim has been profiled in articles by Index Universe and referenced in Barron’s, Wall Street Journal, Business Week and Fortune Magazine among others. Kim began his financial career in 1987 when he joined Montgomery Securities in their Institutional Sales division, marketing U.S. equities to Japanese institutions. He was promoted to Managing Director of Institutional Sales in 1997 during the period when Montgomery was purchased by Nations Bank. By 1999 he had advanced to the transitional head of International Sales for Banc of America Securities, following Bank of America’s takeover of Nations Bank. From 2000-2001 Kim was named the head of the Institutional Sales and Trading Department overseeing 60 sales traders in 6 cities. From January 2002 through August 2002 he was appointed the head of Equity Product Marketing. He served on the Investment Policy Committee and the Executive Management Committee at Banc of America Securities from 2000-2002.

Key Takeaways

• [04:03] - Kim’s professional background and more on his role at Main Management
• [06:00] - Main Management’s motto is “we believe investors should keep more of their investment returns.” How does this translate into day-to-day operations?
• [08:08] - How has Kim’s investment philosophy evolved overtime in terms of values?
• [09:08] - What does Kim know now that he wishes he understood ten to twenty years ago?
• [11:01] - What role does intuition play in Kim’s decision making now versus early in his career?
• [12:03] - Does Kim have any daily routines, or rituals, that help him stay focused and ground his thinking in chaotic markets?
• [13:30] - Are there any mental models, investing or otherwise, that Kim returns to regularly to guide his perspectives?
• [15:03] - When Kim looks back years from now, what kind of impact does he hope to leave with the industry, his clients and his team?
• [16:00] - How does Kim define success today and how has that definition changed over his career?
• [17:30] - As a portfolio manager and a leader, what biases or other internal battles has Kim had to overcome?
• [18:57] - Either inside, or outside, the world of finance, what are some trends that Kim is really curious about right now?
• [21:05] - Outside of investing, are there other things that Kim finds inspiring or energizing at the moment?
• [22:36] - A story about Kim, potentially from earlier in life, that best captures who he is today?
• [24:36] - Is there a book, movie or quote that has influenced Kim’s leadership or investment approach?
• [26:53] - Who in Kim’s life, or career, has had the biggest impact on how he thinks and what lessons did they teach him?
• [28:13] - What advice does Kim give most often to younger professionals in the industry?
• [29:22] - Was there a pivotal point in Kim’s career where he had a failure, or a setback, that has shaped his life in a meaningful way?
• [31:35] - How does Kim stay motivated and optimistic during tough market stretches or personal challenges?
• [33:27] - What is currently Kim’s favorite investment idea?

Quotes

[08:16] - “I stole this from Bezos, but we do it in all of our meetings - we’ll have an empty chair, and I’ll remind everybody in there that hasn’t heard it, but that chair is the client sitting there. So, whatever you’re going to say, you better make sure that it’s client centric because they are listening and they will remember… Again, when you kind of grab your team that has that building block and then you start building off of that, good things will happen, but it’s got to start from that foundational piece.” ~ Kim Arthur

[31:40] - “In any given year, the market drops 10% from peak to trough. It’s very interesting how, when it does that, it feels so unique like it hasn’t happened before, but it’s actually 12 months before that it happened. Then, every three plus years, you get a 20% drop…and it feels awful…So that gives me solace, to look back and realize that this too will pass. This is part of the nature of the markets.” ~ Kim Arthur

Links

• Kim Arthur on LinkedIn
• “The Zoo” by Scorpions
• Main Management

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Disclosure(s) - Orion Portfolio Solutions, LLC, an Orion Company, is a registered investment advisor.

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