Sixteen years ago while on honeymoon in Buenos Aires, I stumbled upon a fourth-generation shoemaker named Correa. His workshop was more than just a store – it was a living testament to a craft honed over the better part of a century.

The man who owned it, the fourth member of his family to take up the trade, spoke with quiet conviction about the importance of process, of using only the finest materials, and of ensuring that every pair of shoes leaving his hands was as close to perfect as possible.

His obsession with quality was evident in everything he did. The leathers he used were the best he could source. The construction process had been refined over decades, passed down through his family, each generation making incremental improvements.

And the results spoke for themselves.

The shoes I bought that day became a staple in my professional life – I have worn them at least four times a week for 16 years, and they still look as good as new.

I have no doubt I will be wearing them for the next 16 as well. Not because they are fashionable, but because they are timeless. Not because they were expensive, but because they were made with care.

They lasted because they were crafted, not manufactured.

I often think about Correa when I consider what makes a truly great investment manager.

Much like a master craftsman, a fund manager – when they approach their work the right way – is dedicated to their process, single-minded in their pursuit of excellence, and relentless in their search for the right raw materials.

Where a shoemaker sources fine leather, a fund manager seeks opportunities. Both professions demand a commitment to mastery, an appreciation for nuance, and an unwavering discipline to improve their craft every single day.

As Ogilvy founder David Ogilvy said: “We pursue knowledge the way a pig pursues truffles.”

Peregrine chair David Fraser spoke at an investment conference at Emperors Palace recently. I asked him to arrive at 9.30am for a panel discussion scheduled for 10am. When I got there, I found him already waiting. I asked what time he had arrived.

“Seven,” he said.

I was surprised. “Why so early?”

His response stuck with me: “Because the casino floor is quiet at that time of morning. It gave me the chance to walk around, talk to the cashiers, the dealers, the floor managers – to ask them how business is going, what trends they are seeing, and whether customers are coming in feeling positive or negative about the economy.”

Here was a man who had spent over 30 years in the business, and he was still hunting for data points in the quiet hours of the morning, gathering seemingly small pieces of information that could fit into a bigger picture.

That, to me, is the essence of a great fund manager.

It’s not just about reading balance sheets or studying macroeconomic trends – though those are important. It’s about having the instincts of a truffle pig, always sniffing for the hidden signals others overlook. It’s about refining a process of discovery, day after day, year after year, until it becomes second nature.

Investment is a craft, not just a science

There’s a common refrain in our industry: fund management is part art, part science. But I would argue it’s something else entirely – it is a craft.

Craftsmanship implies a lifelong pursuit of mastery. It suggests an iterative process of refinement, where each decision builds upon the last, where mistakes are analysed and improvements are made not in grand revolutions but in subtle, deliberate steps.

The best investment firms institutionalise this way of thinking. They don’t just rely on individual brilliance; they create an environment where the collective wisdom of experience is shared, challenged, and strengthened over time.

At Peregrine Capital, this is exactly how we approach investing. We view our process not as a rigid system but as a living craft – something we can always improve upon, something we can teach to others, something that compounds in value the more it is honed.

Just as the Correa family refined their shoemaking techniques over four generations, we refine our investment philosophy with each cycle, each market correction, and each new opportunity.

What makes Peregrine Capital distinct is its approach to crafting investment strategies that not only withstand market turbulence but also grow in strength over time. We focus on developing long-term value and emphasising careful, deliberate decision-making over impulsive actions.

The hallmark of our process is discipline, patience, and consistency.

We know that the path to sustainable returns requires a methodical approach that is continuously adjusted to the dynamics of global markets, always underpinned by rigorous research and deep insights.

Our team is deeply committed to a culture of collaboration, where each member brings their own expertise to the table, challenging each other to think critically and creatively. This collective intelligence fosters an environment of continuous improvement, where every success is celebrated, and every failure is dissected for lessons that can be applied in the future.

This shared mindset strengthens our investment process and allows us to adapt effectively to ever-changing market conditions.

The legacy of craftsmanship

Perhaps the most important parallel between the master shoemaker and the master investor is this: both understand that true expertise cannot be rushed.

Just as a craftsman takes years to perfect the precise cut of leather or the ideal stitching technique, a great investor must spend decades refining their instincts, understanding market cycles, and recognising patterns others miss.

But what truly sets them apart is their desire to pass that knowledge on.

Masters of a craft do not hoard their skills – they teach them, ensuring that the next generation builds upon their work.

This is how excellence is institutionalised.

At Peregrine Capital, we believe in this same philosophy. By sharing insights, challenging our own thinking, and continuously improving our process, we create something more powerful than any single individual: a culture of craftsmanship that outlasts any market cycle, any individual stock pick, and even any single generation of fund managers.

The best shoes are not just stitched together – they are built with purpose, with patience, and with an understanding of what makes something last. The best investment firms are no different.

Craftsmanship is the difference between the transient and the timeless. And in a world obsessed with the next big thing, we remain committed to the long game – refining, improving, and mastering our process, one step at a time.

Article on Moneyweb: https://bit.ly/3FfunzY