James Chiu, CEO of Vatic Investments shares the philosophy behind the global quantitative trading firm.

With plans to increase their global presence in New York, London and Singapore, James shares how he has built a world-class team with some of the best mathematicians and physicists in finance, the role of AI in shaping the industry and tactics to attract the next generation of technology talent.

What early working life and experiences helped shape where you are today? 

In college, I invested during the dotcom times and lost a lot. I think it was a great lesson, as I told myself that one day, I’d make 100 times what I’d lost. After a while, I was looking for the next opportunity and I noticed that the industry was notoriously secretive. I wanted to build a team that was collaborative, with the goal of building a place where smart people can work together – rather than competing against each other. It’s been the same clear vision since day one, and it’s been exciting as we’ve been able to attract talented individuals that I’m honored to work with.

How have you gone about building a world-class team whilst sticking to your core principles?

The industry is extremely competitive with so many great companies to join. We don’t have unlimited capital like the bigger firms, so we had to be creative and build a company that was distinguishable – not only through financial reward. I’ve always admired Goldman Sachs’ partnership setup and that’s what we strive for at Vatic. It fits into our principle of seeking a team with a low ego as it goes together with open mindedness, which is a key ingredient to a collaborative environment. It took a lot of discipline and hard choices to get to where we are today, but we really believe in long term gratification versus short term wins.

What have been some of the biggest learns and tactics when trying to attract the best talent?

As humans, we value the people who are like us the most. We’re big on first principles, so it’s about knowing tendencies and having self-awareness. We must ask critical questions, such as “why do we like this person so much?” and “what if we’re wrong?” We are big believers of diversity, so we pay a lot of attention to finding people from different backgrounds. I think of it as being like a puzzle, with a diverse set of people being a different piece to the puzzle.

Every quarter we try to hire a candidate that doesn’t fit our ordinary process, in terms of experience and background. I feel like we’ve learnt from our hard lessons, but the beauty of mistakes is that it shines a light on what you don’t want. It’s like the inverse thinking concept, and it allows you to focus on what you need in terms of talent.

What have been some of the biggest cultural challenges?

We’re very proud of our culture, but we realize that even good culture evolves. Every month, we sit down with our newest hires and give people the opportunity to voice their opinions. The last thing I ever want is for them to be told, “that’s just how it’s done here” If you’re new to a company and you hear that two or three times, your passion is going to be crushed. I want to enable our team and make sure they are the change agent.

How do you spot world-class talent in the hiring process?

In our hiring process we don’t just believe in one touchpoint. Imagine if someone comes into the office, the person who’s greeting them will have a lot of information which can be extracted methodically and put into the process. How does the candidate treat the person in the front when they first come in?

Everyone who interacted with the candidate has a discussion, as that’s when you find out extra information you might have initially missed. Sometimes a candidate would be extraordinary in a particular niche, but we might not be testing them in the right way. This meeting is crucial, as we systematically go through the different evaluation points, and look holistically to see how the person fits into our organization. In the past, we’ve experienced times when we hire someone, and they’ve brought something to the table we didn’t expect. It can be eye-opening, as even though the skill set wasn’t something we weren’t deliberately looking for, we work things out together.

How have you attracted highly respected industry figures into a start-up?

It’s our synergy. I think what’s unique about Vatic is that we have strong expertize, both on the high frequency side and with statistical arbitrage. I think people are curious and like to learn more and grow. As Tony Robbins would say, growth is a very important human need and if we’re not growing, we feel like we’re dying. I used to be in that position, so that’s why I started Vatic Investments because I wanted to grow at a faster rate. We nurture that environment, so to senior figures, that’s very attractive. Many of us have been in the position where we do well financially but it hasn’t been satisfying.

Is there a future direction that you’re most excited about within the AI trading space?

I believe that the market is still very fragmented. I think AI will allow us to integrate the marketplace into one big system, so I’m excited to see what that will look like. We always say, “5 years ago it was so much easier” so by looking forward, that’s what gets me really excited.

Have there been any tactics you’ve implemented to avoid the talent scarcity?

I think the pandemic helped a firm like us, as people realized that although the financial side is part of the overall equation – it’s not the whole equation. Before, new graduates would have gravitated towards the larger firms because of the mindset that these companies are better. With the change in mindset, people are starting to realize they could learn more in a smaller firm, have financial rewards and be surrounded by colleagues who value them.

What’s the biggest challenge facing you as a leader in the coming months and years?

There’s always going to be challenges which we’ll have to adapt to and tackle as they arise. As we grow, how do we make sure we keep a collegial environment? I asked myself this question when we were 8-12 people, and now we’re close to 40 it still feels like a family! I love our environment and I want to make sure we keep it.

Is there anything you wished you’d known before?

When you want to do something instead of thinking how you think who. This has helped us immensely because it helped us scale. If you find the right person, they can take the baton and run with it. I think it goes back to having an awareness and being open-minded, as it helps to make better decisions and is something we continue to get better at.

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