Greg Royce is the Founder and Chief Investment Officer of Maximus, a low-net exposure, long/short equity strategy focused on the Industrials and Materials sectors.
After 12 years as a Portfolio Manager and Research Analyst at some of the most well-known hedge funds, He founded Maximus to manage assets for sophisticated institutions and high-net-worth individuals. Maximus is now a Successful Investment Management Company. In this exclusive interview, learn more about the journey of Greg Royce.
What motivated you to start Maximus? How did the idea come about?
I was fortunate to be trained at some of the world's most well-respected hedge funds, and I learned a tremendous amount at those firms. I had always wanted to start my own company as I have enjoyed building and creating, collaborating with great people, and leading teams. I have modeled my risk parameters around what I was taught at S.A.C. Capital/Point72 Asset Management and Visium Asset Management.
What was your mission at the beginning of starting your business?
Creating a product and brand that would resonate with many sophisticated investors and fill a void in terms of the coverage universe we offer. Rather, there are many technology and healthcare funds to choose from, but very few industrials/materials funds to choose from. Additionally, we offer attractive fees for early investors and are open to additional managed accounts.
What do you attribute your success to? Is there a trait you have or a person who helped you along the way?
Grit and determination. These are the most important character traits that have helped me get to where I am, which will propel Maximus and me to be where it needs to be. Steve Cohen and Perry Boyle, the former Head of Equities/Director of Research at S.A.C Capital, taught me much of what I needed to learn as a PM. I am grateful for what they taught me and for the opportunity to work at such a great firm.
When times get tough, what would you say motivates you to keep going? To not hit the snooze button and to keep fighting for your goals.
I am driven and hungry for success, and I love competition. However, what truly motivates me every day are the people who believe in me, including our earliest investors and the ones who have stuck with us through a global pandemic.
Employees are one of the most important players to succeed in business. What do you look for in an employee?
I look for someone who is just as motivated and hungry as me, along with someone who understands how starting a business can be challenging, with many ups and downs. My analyst, Nathan Hong, has trusted me for over two years now, and I greatly appreciate his efforts. We also partner with great outsourced providers, which is essential as well.
What is unique about your business? Is there a competitive advantage that you have over the rest?
Our focus on risk control, fundamental analysis, breadth of knowledge, and relationships within our sector allow us to generate attractive risk-adjusted returns for our investors over time. Also, as mentioned above, there are few funds to choose from that focus on our sectors and our risk parameters.
Have you ever gotten a disappointed client or customer? If so, how did you handle the situation?
We are in the business of making money for our investors. If we don't do our jobs, I fully expect this business will not exist over the long term and I wouldn't blame our investors for that.
Is there a type of marketing that has worked amazingly for Maximus? If so, how did you stumble upon it?
We have used Preqin for many LP searches and MailChimp for our monthly performance newsletters, and it has been a good source of investor engagement. We have also used the more traditional forums of the capital introduction teams, who have been very helpful to us, especially Goldman Sachs. Pre-COVID, we attended the Context Summits and Santangel's Review conferences.
In terms of investment structures, we have been successful in the separately managed account realm and are open to additional SMAs as we continue to focus on growing our fund.
Is there any resource or resources that helped you on your journey to becoming a business owner?
As referenced above, we have been fortunate to partner with excellent counterparties, including Goldman Sachs, SS&C, KPMG, Blue River Partners, and General Risk Advisors.
What are the three best pieces of advice that you would give to anyone starting a business? What do they need to know from the very beginning?
Be gritty and aggressive, but also be humble and appreciative of the time people spend learning about your business.
Be prepared for things to not go as planned and ready to adjust.