Our founder’s life isn’t a story of either/ors. It’s a story of ands. Numbers and words, art and science, nature and technology. Gifted in all these things and passionate about most, Alejandro H. Garza taps them for inspiration in both his professional and personal endeavors.
Alejandro shares his story – the abbreviated version – here.
When I began to map out my career path in college, investment management wasn’t on my radar. I was studying art and chemical engineering at the time and convinced that one or both were my calling. My first job ended up being as a chemical engineer, but art was still a passion – so much so that, a few years into my career, when offered an internship with an investment banker whose wife owned a gallery in New York City, I resigned and moved to New York. I secretly hoped the opportunity might open doors for me in the art world. Instead, I developed a new passion: investment banking. It was the first of several unexpected turns and detours that led to a career in finance and also entrepreneurship.
“I secretly hoped the opportunity might
open doors for me in the art world.”
Inspiration & Influence
When I think about the choices that led me to where I am today, I realize just how influential my family and upbringing were. My parents are from blue collar families that emigrated from rural life to the industrial city of Monterrey in northern Mexico. Their families shared similar views that education and hard work are key family values required in the pursuit of happiness and progress.
My mother’s grandparents were first-generation immigrants, moving to Mexico from Europe at the turn of the 20th century during the Mexican Revolution. My great grandmother would often share fascinating firsthand experiences and stories from this period.
I admire both my parents. But in terms of professional influence I think my dad was fundamental in orienting me toward a career in finance. His journey from being the first college graduate in his family (he earned a degree in mechanical engineering) to attaining multiple post-graduate degrees, including an MBA from Monterrey Tech, an MBA from Wharton Business School, and a PhD in organizational psychology from Pepperdine University, made a serious impression on me.
When my dad was attending Wharton and I was five and six years old, we lived in Philadelphia. He was on a scholarship, so he had to study hard and was extremely disciplined with his time. From my earliest memories, I remember the house library with hundreds of books and my parents always studying. My mother is a psychologist and psychoanalyst and former member of the Lacanian School of psychoanalysis in Paris. Sundays, however, were almost sacredly reserved for family.
“From my earliest memories, I remember the house library
with hundreds of books and my parents always studying.”
My dad had to learn English before even applying for admission to Wharton. And my mom navigated the complexities of taking care of us three kids (I’m the eldest) without knowing a single word of English at the time. The courage and risks required for them to pursue their personal and professional dreams during that phase of their lives is astounding.
Barking Dogs & Bravery
There’s a quote in Spanish from Cervantes’s Don Quixote that I think captures the essence of my parents’ courage. The quote is widely popular, yet nowhere to be found in the novel, which I read for a second time as an adult for the sole purpose of finding the quote. My translation is poor, but it’s something along the lines of “If the dogs are barking loudly as we pass by, it’s because we are advancing and making progress, Sancho.” It conveys the idea that, to gain something valuable, one must not only put in significant effort but often also endure some pain along the way. I love and agree with the meaning.
Throughout my career, and as an entrepreneur, I’ve come to realize that difficulties are inherent in achieving worthwhile goals. But there’s a tremendous sense of accomplishment that comes from overcoming those challenges.
Most entrepreneurs hit a few bumps along their career path. For me, the catalysts that led to the launch of AZTLAN were my rebellious inner voice and my conviction that there is a better approach to investing globally.
“The catalysts that led to the launch of AZTLAN were my rebellious inner voice
and my conviction that there is a better approach to investing globally.”
Blending Art With Science
Early in my career as an analyst researching international stocks, I was taught to use a top down, macro-based country allocation model to analyze companies. It didn’t compute for me. I wasn’t convinced a model that tracks macro variables like inflation effects and GDP growth could accurately and effectively analyze companies with business fundamentals independent of macro variables. So I developed a different model that combined fundamental bottom-up analysis of companies with a top-down view. My belief was, and still is, that a combination of quantitative and fundamental analysis (art + science) can lead to a competitive advantage. The investment team at the firm I was working for at the time, Emerging Markets Management, saw the value of this model and incorporated it into their research process. Emerging Markets Management was later acquired by Ashmore Equities, which led to an evolution of the firm’s investment process and the reversion back to a more rigid way of investing. It was then that my vision for AZTLAN began to take shape.
I think you have to be a little bit crazy to take an entrepreneurial leap. Even when you have a good track record, come from a large investment management firm, and have years of experience, it’s still super difficult to build a team, crystallize your vision for an investment strategy, and put it all together in a way that convinces investors to trust you with their assets.
“I think you have to be a little bit crazy to take an entrepreneurial leap.”
Lessons Learned From Legends
I didn’t take the leap alone. I’ve worked with some amazing people from whom I’ve learned a lot. I’ve always recognized how lucky and privileged I’ve been in general, and with the mentors that I’ve had in particular. For instance, I had the opportunity to work with great professionals at EMM and Ashmore, true pioneers in emerging markets investing. But my first and most important mentor, by far, is my dad Enrique H. Garza.
He didn’t teach me value investing concepts like the margin of safety, or how to analyze a company (although I did study from his MBA books when I was a kid). He taught us math (and I mean, all of us! Siblings, cousins, my daughters, nephew and niece, even my wife recently studied with him for her recent SAT test!).
But he taught me some of the most valuable lessons in life including the value of hard work, perseverance, the value of education and cultivating one’s mind, the importance of being daring and bold with actions in the pursuit of big goals…above all integrity. I am so grateful for this mentorship that continues. These are the things we look for to be part of the corporate culture in the businesses we invest in, and the kind of values that I hope we are imbuing at AZTLAN Equity Management.
My father was, for more than 20 years, the CFO of Industrias Alen, one of Mexico’s largest branded home cleaning products in Mexico and Central America. He is a mechanical engineer from Monterrey Tec and holds, among other degrees, an MBA from Wharton and a PhD from Pepperdine University. He introduced me to Michael Muneman and Othon Ruiz, both investment bankers that worked with Violy McCausland and Stormy Byorum at NY-based Violy Byorum & Partners LLC (VB&P), one of the most renowned IB advisory firms in the 90s and 2000s, where I worked from 1997 to 2004 in a truly wide array of M&A deals across LatAm, from Tijuana to Patagonia, from housing and beverages, to retail and manufacturing to funerary homes! It was an amazing learning experience.
One of our corporate clients in those days was Mexican glass manufacturing giant Vitro SAB de CV. That’s how I met Mr. Federico Sada Gonzalez (CEO), and his father Don Adrian Sada Treviño (Chairman), two of the great Mexican businessmen of the 20th century. Don Adrian was an engineer and inventor of the highest degree, Mr. Federico was extremely well travelled and well read. And a generous man (he approved my MBA scholarship with Vitro’s sponsorship). They both introduced me to Chinese architect I.M. Pei and tasked me with establishing one of Mexico’s first factories in China, at the Suzhou Industrial Park.
At Vitro I also worked with Alvaro Rodriguez (then CFO) and when he left the company and had a conversation over dinner with Actinver’s CEO Hector Madero and then Emerging Markets Management (EMM) CEO, Felicia Morrow. He recommended me for a Latam equity analyst role at the firm. Felicia interviewed me, as well Antoine Van Agtmael (Founder and Chairman) and I was so incredibly lucky that I was hired on the spot! Antoine had founded EMM 20 years earlier in the late 80s and coined the term “Emerging Markets” when the asset class didn’t exist, and it was called the “Third World”, true pioneers! His partners included the famed investment management firm Strategic Investment Group (SIG) headed by Hilda Ochoa-Brillembourg, formerly CIO of The World Bank. According to Ray Dalio in his book ¨Principles¨ Hilda as CIO of the World Bank was Bridgewater´s first institutional investor. During the EMM years I was part of the investment committee and participated in the evaluation of hundreds of investment opportunities in Emerging Markets, I also produced hundreds of analytical reports on Latam companies and traveled the region visiting management teams along with other investors. Back then I developed the first version of our quant model when I saw the old version that the firm was using. The eureka moment came when I realized we were investing in companies, not countries, and that completely changed the way I thought any stock selection and country allocation quant model could be built.
In 2011 the Ashmore Group came and acquired us. I stayed as director of research and senior portfolio manager and had the opportunity to work with Mark Coombs (Ashmore’s founder and CEO). Those years were instrumental in my maturity curve as a global investor and portfolio manager, having gone through the global financial crisis and then the recovery years leading up to 2016. At that point I finally felt I was ready to launch Aztlan!
In my artistic endeavors, as much as in my investment management career, I´ve had legendary mentors. During my formative years as a teen and young adult, I received formal academic training with Antonio Pruneda, the Mexican artist that created the “made in Mexico” logo and was renowned for his wonderfully colorful impressionist pastoral landscapes. His paintings form part of major collections in Monterrey and Mexico City. Although my career took me in a different direction, I’ve never stopped producing art and experimenting with new materials in my lab, and I have had my art studio for more than 30 years.
“I’ve never stopped producing art and experimenting with new materials...”
Astronomy is also very important in my life. I have several telescopes and instruments and would like to spend more time on astrophotography. I also love to read and just started Haruki Murakami´s Men without Women, which is a set of 7 short stories, and Michael Lewis’ Going Infinite: The Rise and Fall of a New Tycoon, a book recommended by my friend, colleague, and AZTLAN’s Director of Quant Research, Gerred Howe.
And finally, triathlons! I’ll launch my tri season in Campeche, Mexico, and train hard throughout the year to complete the full circuit of 10 competitions in 2024.
Life Imitates Art
I’ve learned a lot over the years, not the least of which is that that life is a series of interconnected experiences and people. Like art, each adds depth, texture, and color to our lives. With so many wonderful opportunities and influences in my life, I’m confident I’m well on my way to creating a masterpiece