Meet the Investor - Mr Henry Soediarko -– formerly of Miltrust International
Our Z Club members had the chance to meet Mr Henry Soediarko from First Estate Capital Management, formerly of Miltrust International, and learn from his extensive experience in the capital markets.
Late this March, a few of our Z Club members had the privilege of having breakfast with Mr Henry Soediarko from First Estate Capital Management, a Singapore based investment and wealth manager that closely work with Milltrust International Group, an investment organisation co-headquartered in London and Singapore.
Henry is the Senior Portfolio Manager and Head of Research for the Climate Impact Asia Fund at First Estate Capital Management, a fund dedicated to addressing climate change through positive impact solutions.. Starting his career at Citi and HSBC and with over 12 years of experience in the Asian equity long-short hedge fund industry, Henry brought a wealth of knowledge in portfolio management, trading, risk management, and ESG analysis into our conversation.
Read on to find out the reflections and insights three of our members gained from meeting Mr Henry!
Z Club members with Mr Henry Soediarko (Far Left)
Meeting Henry was an insightful experience, offering a deep dive into the realities of investing across different markets. With almost 20 years of experience spanning large banks and entrepreneurial ventures, he has a nuanced understanding of the financial landscape, particularly in Asia and the U.S.
One of the most striking takeaways was Henry’s perspective on Asia’s growth potential. He acknowledges its role as a powerhouse driven by two economic giants but also notes that India is becoming expensive especially after a good run last year. Meanwhile, China, despite facing a property downturn, has seen a significant rebound in equities, reinforcing the idea that economic cycles are inevitable and often present investment opportunities. His emphasis on two key factors, earnings growth that is often followed by capital inflows provides a clear framework for evaluating markets.
Henry also touched on the importance of the U.S. as a market that cannot be ignored, primarily due to AI and tech advancements and the global influence of the dollar as a reserve currency. This perspective underscores how macroeconomic forces shape investment decisions at a strategic level.
His thoughts on corporate governance were particularly interesting, especially in the context of Southeast Asia. He highlighted Indonesia’s e-Fishery fraud case, where a lack of on the ground research led to failures. The question he posed whether investors should sacrifice corporate governance for higher returns was thought-provoking. While activist investing can help steer mature companies toward better projects, the balance between governance and profitability remains a critical challenge.
Henry’s insights into specific companies also stood out. He mentioned LG Chemicals and its subsidiaries, LG Energy Solution that supplies toTesla, illustrating the importance to deep dive on the business fundamental. His ability to test both BYD and Tesla firsthand further emphasized his hands-on approach to investing.
Sustainability was another key theme. Henry has a deep appreciation for ESG investing, particularly in emission reduction. He categorizes investments into two areas: those directly reducing emissions and those driving earnings growth i.e. cost reduction through sustainability efforts. He also acknowledged that young companies need room to make mistakes, a realistic take on the challenges of scaling climate impact ventures.
His perspective on India was pragmatic acknowledging the midcap opportunity while recognizing the cyclical nature of democracy, where governance shifts create both opportunities and challenges. Networking was another key lesson he stressed that in investment circles, nine out of ten interactions may lead nowhere, but the one that does can be transformative. His reference to the author of Market Wizards as his previous boss’s top investment person was a reminder of the value of learning from seasoned and less well known investors.
Overall, Henry provided a realistic, experience driven take on investing. His ability to balance macroeconomic insights, corporate specifics, and sustainability considerations made the discussion not just educational but also highly relevant to today’s investment landscape.
Mouli Raj
Key Takeaways from Recent MTI with Henry Soediarko
· Investment firms face challenges with workforce motivation and effectiveness, with some team members being less proactive. Middle management turnover is common, with some employees being more effective asset managers than others.
· Positive outlook on growth opportunities, particularly through networking at family office events and potential partnerships in regional pension funds.
· Ongoing interest in ESG investments, driven by industry trends and personal experiences in infrastructure investment projects.
· ESG: Cost center or value driver? Henry questioned whether ESG funds truly drive value or if they serve more as a branding tool for large institutions like JPMorgan, Bloomberg, and MSCI.
· Market trends & investment strategies:
o Money has not yet fully flowed into China, creating opportunities for export-driven earnings growth.
o Smaller markets often have less broker coverage, leading to higher upside potential.
o China remains a proven manufacturing center with decades of expertise, contrasting with India's emerging position.
o High tendency for firms to hire individuals who reflect their own background and perspectives.
· Strategic considerations:
o The Market Wizards book was recommended by Henry
o The effectiveness of extrapolating investment trends remains uncertain, as market conditions are constantly evolving.
Joshua Heng
Speaking to Henry and hearing about his story on starting his fund was insightful and interesting. I enjoyed hearing about the different considerations a fund has when starting to scale. I also enjoyed his sharing on the history of ESG investing and how ESG metrics offered by different firms such as Bloomberg and Reuters. As an investor who's interested in ESG, I liked how Henry pointed us to focus more on whether ESG considerations were a cost or profit centre and whether they were financially material, which is something that many of us, young optimistic investors, fail to take into account when excited about a new investment opportunity with strong ESG performance.
I would definitely recommend attending future MTIs with Henry if one is interested in hearing candid views about financial markets and current affairs.
Gaius Ang