Local boy makes good.

Profile series: Key members of the Gate Capital team as well as those individuals influencing Society

What has allowed a first-generation Gujarati-Briton, growing up in Hemel Hempstead to make a success in the Financial world of the City of London? “Attitude!”, is Sanjay Ranchhoddas’ immediate reply; as we walk around the site of his new home, on the edge of the fortifications of Berkhamsted Castle.

A director of Gate Capital, the boutique Investment management and derivatives firm, Sanjay manages the firm’s Trading activities. He structures, manages and invests funds in the portfolios of a number of High Net Worth clients. The largest portfolio is well over £10m. Also, Sanjay has responsibility for overseeing the Firm’s total client asset base; totalling nearly £700 million.

Dizzying figures for a boy from a Gujarati immigrant family.

Hemel…

Sanjay’s parents, Kanak and Jayshri, were immigrants to Britain (arriving in 1965 and 1974 respectively). According to Sanjay they were “true entrepreneurs”. His belief is that people in Britain today just don’t appreciate the risks and daring it took to be an economic migrant, especially in those days.

That pioneering spirit inspired Sanjay; especially to be self-reliant. Sanjay’s father always extolled the virtues of an education to his only child; even though Kanak’s own was rudimentary. Yet, Sanjay did not find school particularly inspiring. He recounts how he found the books a bit dry and dusty, but loved the social element of school. “What really grabbed me was numbers, …they speak to me at so many levels”. This passion is clear as his eyes sparkle. Sanjay realised that his numeracy was something that he could excel with, beyond the sums in his head and spreadsheets on his computer.

…City of London…

Sanjay’s first job was in Sales, as any good Gujarati son. During the booming Noughties, it took Sanjay to the expanding world of financial services in the City of London .“I learnt so much in that grind of the trading floor”, he mused.

Sanjay has always been surprised by the self-limiting approach to life that many people take.“I have never felt excluded from success, nor entitled to it”. Sanjay’s personal journey reflects the fact that British society, throughout the centuries, has a long history of welcoming foreigners. The Americans got their ”can do” spirit from Britain; and Britain got it from its foreigners. Fellow local boy, the Earl of Beaconsfield, a first- generation Briton of Italian Sephardic descent, was Britain’s first Jewish prime minister and Queen Victoria’s favourite. [Fingers on buzzers: Yes, Disraeli!] Sanjay shares his father’s mantra: ‘Life is to be explored; not delivered’. Sanjay smiles, and comments: ”No Just Eats for me!”, his eyes twinkling.

It was that drive to succeed that also brought Love. Without undue regard for convention, caste and community; Sanjay cheekily wooed and won the heart of his now wife, Preeti. She is a daughter of an Indian diaspora family from Kenya. For Sanjay, it was a step up and beyond from the Gujarati world of North London.

…Berkhamsted

Britain, despite all its challenges, has been good to the Ranchhoddas family. Preeti is a senior project manager at RBC – another numerical thread. The Indian link, in all its manifestations, has been a bedrock of support and development, given expression in Britain. A shared work ethic has allowed Preeti and Sanjay to build their respective careers in parallel. They have created and maintained a lifestyle for their two children that their respective parents would never have contemplated.

As Sanjay reflects: “I may have sloughed away my time at school, but in my career I have seen the incredible benefits that education brings: for myself; colleagues as well as clients. They have inspired and supported me.” The Ranchhoddas brood attend Berkhamsted School; a two-generation step from the Peepal tree.

Spotting and riding the waves

Today, beyond managing the complexities of a FCA regulated firm, Sanjay spends his time contemplating and devising investment strategies. Sanjay cites the example of one of his HNW clients, who suggested exploring the social media based investing world of r/wallstreetbets.com (made infamous by robinhood.com and GameStop). “We were ahead of that particular wave and rode it well”, Sanjay reflects. Palantir was unknown in those days. Combining a client’s insights with his own trading skills in equities and options (both calls and puts) Sanjay often makes dozens of trades on a daily basis on global exchanges. The returns are above average with little additional risk. Sanjay smiles: ”It is fun and most importantly, rewarding; on many dimensions. What could be better?!”

As Sanjay extols: positive returns lead to a satisfied client but it is the intellectual challenge of a good trade effected: a return as well as protecting the underlying invested capital. He describes how volatility can be harnessed to that effect, full of examples. Sanjay pauses, “GME; we made and kept money on that rocket-roller-coaster”. and laughs raucously.

Getting clients aware

Looking forwards, Sanjay is convinced that educating investors is critical. Many people wanting to invest, or currently invested in the capital markets, are unaware of the opportunities and how best to act. This lack of understanding prevents them from getting the best advice, service and returns.

Sanjay cites the example that nearly 40% of US investors use options, which can reinforce and protect investment returns. Yet only 10% of British investors use options. This gap is a result of a misplaced stigma that options are high risk derivatives, with a fear that in the wrong hands can be weapons of mass destruction for an investor. However, when options are used properly, they can lead to extremely well controlled risk/returns in combination with a traditional buy & hold equities strategy. Sanjay is on a mission to increase the use of options, as witnessed by the UCITS fund he has launched, www.thewrittenfund.com, which is focussed on covered calls.

“I have never found my background to be a hindrance”, Sanjay concludes. “My limits are my own”, delivered with a dazzling smile.

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sanjay@gatecapitalgroup.com

www.gatecapitalgroup.com

www.justinjenk.com

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Justin Jenk is business professional who enjoys discovering and connecting dots. with a successful career as a manager, advisor, investor and board member. He is a graduate of Oxford and Harvard universities. Justin can be found at justinjenk.com or www.raktas.ee or researchgate.