Investment Banking Rising Stars

Anthony Clake - Marshall Wace

This is a blog for undergraduates and young bankers who want to develop an investment banking career, and of course those who want to retire before 30. Let me ask you a couple of questions.

What do you expect to do at the age of 24?
In how many years will you turn 24?

I am going to tell you the story of Anthony Clake. At the age of 24, Anthony became a partner at Marshall Wace (AUM €7.9 billion), one of the largest hedge fund firms in Europe. By December 2005, his name appeared on the list of rising stars in London, published by Financial News, and he was the youngest among all.

Quote from Financial News
There's no better time to be young and working in financial markets. Callow youth is no longer a barrier to getting ahead: if you're good enough, you're old enough. Just ask our youngest rising stars, aged 24, or the two 26 year-old hedge fund partners. Read on for the definitive list of the young men and women on their way up. Those over 40, look away now.

Financial News publishes 100 rising stars since 2005. Anthony’s name appears on the 2005 and 2006 list. 2007 list is to be published in December.

See the FN’s selection criteria of the rising stars. This was all about Anthony Clark:

2005
Hedge fund prodigy
Partner, Marshall Wace

Age25

Anthony Clake

Break through
Clake hit the jackpot when he joined Marshall Wace in 2001 after graduating from Oxford. He was made a partner last year.

Mentor
Company founders Paul Marshall and Ian Wace, although Clake works most
closely with Wace, a former head of trading at SG Warburg. The two designed the Tops, or Trade Optimised Portfolio System, in 2001 to analyse the recommendations from sales traders at investment banks.

Firepower
Marshall Wace is one of the largest hedge fund groups in Europe, with $7bn under management. This year, the firm raised $1bn in a day when it opened a new fund focused on North American equities and another $1bn when it opened the European Tops fund to new investors. It is looking to launch an Asian
fund.

Potential
Hard to assess. The question is whether he will stick around at Marshall Wace or set up on his own. Or whether he will retire before he is 30.

See Anthony Clake on the list: 2006

Anthony Clake – Bio
1980 Born
1999 Joint Marshall Wace
2001 Developed the TOPS together with Ian Wace
2004 Partner at Marshall Wace
2005 Nominated Rising Stars – FN
2006 Nominated Rising Stars – FN

Anthony Clake is a partner of Marshall Wace LLP and is a director of Marshall Wace Asset Management Limited. Having joined Marshall Wace Asset Management Limited in 1999, Mr Clake became a partner in September 2004. Mr Clake is the TOPS product manager and is primarily responsible for the day to day implementation of the strategy and the relationships with contributing service providers. Mr Clake oversees the strategy's trading activities and co-ordinates the risk management and optimisation of the TOPS portfolios. Mr Clake holds a B.A. (Hons) from The Queen's College, University of Oxford, in Philosophy, Politics and Economics and is a university prize-winner.

As of 31 December 2006, MWLLP managed in excess of €7.9 billion of assets.

Source: Investegate

Conclusion
If you plan to retire as early as 30, start an investment banking career today. I completely agree with FN that “Callow youth is no longer a barrier to getting ahead: if you're good enough, you're old enough.” I am going to introduce more successful young people in this blog. Enjoy reading.

Test of your investment knowledge
What is Marshall Wace TOPS?

Answer to my previous question: Hang Seng Index

Are you preparing for an investment banking interview? Check this ebook – IB Interview Guide

Investment banking career

Investment Banking Salary – News from Hong Kong

University of Hong Kong – the 2nd and 3rd highest paid 2006 graduates both work in international investment banks
Asia Pacific is an aggressive market for those who are hungry for money. Hong Kong, most international investment banks have their Asia Pacific headquarters here, has great earning potentials.

In Hong Kong, a couple of the 2006 graduates were paid HK$920,000 (US$118,000) and HK$800,000 (US$102,000) respectively, from their first year full-time employment.

Press release from a recent survey from the University of Hong Kong

May 21, 2007 - HKU Graduates Still Employers' Hotshots
13. For year 2006, the graduate earning the highest paid job worked in a privately-owned medical centre. His annual remuneration, including both basic salary and bonus, reached HK$1.14 million (US$146,000).

14. The second and the third highest paid graduates are both working in international investment banks. They receive an attractive basic salary and bonuses that help jet up their total annual earnings to HK$920,000 (US$118,000) and HK$800,000 (US$102,000) respectively. Their work required them to travel substantially outside Hong Kong. Read more.

Conclusion
Are you dedicated to an investment banking career? Get to know Hong Kong, New York, London and Tokyo. Most of the international investment banks have their international or regional headquarters in these cities. I’ll give you more info about these cities on both working and living.

Test of your knowledge on Hong Kong
What is the name of the stock market index in Hong Kong?

Are you preparing for an investment banking interview? Check this ebook – IB Interview Guide

Finding $80,000+ Positions


Investment Banking Salary

Investment Banking Career – News, Bios

Roger Nagioff - Leham Brothers

Do you need a finance-related degree to start an investment banking career?
No. Many investment banks don’t require this. Let me give you an example.

Roger Nagioff was appointed to the position of Global Head of Fixed Income by Lehman Brothers, on May 2, 2007, after 22 years of his investment banking career.

Roger was a lawyer by education. However he started his career as an option trader at Wedd Durlacher Mordaunt (later BZW) in London.

Roger Nagioff – Bio
1985 Option Trader, Wedd Durlacher Mordaunt (later BZW)
1989 Trader, NatWest
1997 Head of European Equity Trading, Lehman Brothers
1999 Head of European Equities, Lehman Brothers
2000 Co-head, Global Equities, Lehman Brothers
2004 COO, Europe, Lehman Brothers (Member of Executive Committee)
May 2007 Global Head of Fixed Income, Lehman Brothers

Quote from Dick Fuld, CEO of Lehman
"Roger's appointment underscores the truly global nature of our business as this is the first time a sole global head of one of the firm's divisions will be located outside the US."

Roger’s Bio from Lehman’s Website
Roger B. Nagioff is global head of the Fixed Income Division at Lehman Brothers Holdings Inc., a position he has held since May 2007. He is a member of Lehman Brothers' Executive Committee.

Mr. Nagioff joined Lehman Brothers in 1997 as head of European Equity Trading, and two years later, was named head of European Equities. From 2000 to 2004, he served as co-head of Global Equities and from 2004 to 2007, he was chief operating officer, Europe.

Mr. Nagioff's career began in 1985 at Wedd Durlacher Mordaunt (later BZW) in the London traded options market. He later spent time trading at Smith New Court and in 1989, he joined NatWest Markets running all of their European Equity Trading, Equity Derivatives, Convertibles and Proprietary Trading operations.

Mr. Nagioff is a lawyer and graduated from what is now The City University in London.

Source: Lehman Brothers

What was the young trader doing?
As I mentioned previously, investment banking isn’t an easy boat to catch. It is difficult to start with. How difficult? Here's some facts about Roger when he started his career.

Here is a speech extract from Patricia Hewitt in 2005 when Roger was the COO at Lehman.

“I want to start with a story I heard a few weeks ago. A young man had just been offered his first job in the City. He was thrilled to bits. Within a matter of a few weeks he was miserable. He had found himself working for one of those managers who didn’t like the colour of his skin. He faced for several months a constant barrage of criticism, bullying, abuse and prejudice. After a year he was ready to quit. He did quit – and he nearly even quit the City.

That all happened some years ago. The young man was Roger Nagioff, now chief operating officer of Lehman Brothers Europe, and a champion of diversity and equality within the City and the economy as a whole. What Lehman Brothers sells is the brainpower of its people. As Roger put it, “If our people are miserable at work then we are not going to be a successful or profitable organisation.” He put the business case for diversity as powerfully as I have ever heard it put….”

Source: Speech extract from The Rt. Hon. Patricia Hewitt, Secretary of State for Trade and Industry, Cabinet Minister for Women - Diversity - A Stronger Economy, a Better Britain
London, Monday, 14 March, 2005

Investment Banking Income Ballpark (2006)
Department Head: US$6,250,000 (High) US$3,750,000 (Median) US$2,500,000 (Low)
Source: Investment Dealers’ Digest

Global Head / CEO: no ceiling

Do you want to be a trader? Take a FREE career test!

Are you preparing for an investment banking interview? Check this ebook – IB Interview Guide

Investment banking career

Investment Banking Career – Entry Level Jobs V

Sales and Trading Jobs at Morgan Stanley

Morgan Stanley is a great place to start a sales and trading career. Let’s see the kind of entry level jobs available.

Morgan Stanley emphasis heavily on mentorship. Click on any of the profiles and you’ll see what people say about their work at MS. Choose those who are at analyst or associate levels.

Quote from Morgan Stanley
Joining an organization like Morgan Stanley is a growing and learning experience.

The Firm has created a variety of programs for undergraduates and graduates, in areas from Information Technology to Private Wealth Management. It is through these programs you can learn about the industry and the Firm, or find a place to begin your career.

Sales & Trading Interview Questions
If you are interviewing for a sales & trading position, be prepared for a list of specialized questions. Here are the suggestions from Morgan Stanley:

Sales & Trading positions require you to think quickly and have a keen interest in the markets, a tolerance for risk and selling skills.

* Why Sales and Trading versus Investment Banking?
* Are you interested in Sales or Trading? Why?
* What does a Trader do? What does a Salesperson do?
* Do you want to sell or trade equity or debt instruments? Why?
* How do you measure success in your life?
* What makes you think you can sell?
* What about your personality will make you a good Trader?
* If interest rates rise, what happens to bond prices, and why?
Source: Morgan Stanley

Are you preparing for an investment banking interview? Check this ebook – IB Interview Guide

Test of Your Investment Knowledge
Hank Paulson used to be the CEO of which Wall Street bulge bracket, before becoming the Treasury Secretary of the US Government?

Click here only if you DON’T know the answer.

Do you want to be a trader? Take a FREE career test!

Investment Banking Career

Investment Banking Resumes vs Amazing Resume Creator

Jimmy Sweeney and his Resume Creator

Remember Jimmy Sweeney? He’s one of my most admired figures in the field of resume writing and cover letter writing.

I’ve introduced his Amazing Cover Letter in my earlier posts. To quickly help refreshing your memory - Jimmy’s ebook Amazing Cover Letters dominates the number one best selling position among Clickbank’s marketplace on employment. FYI, Clickbank is the largest online information seller. All products are subject to immediate download after you made a payment.

Jimmy has recently launched a new ebook Amazing Resume Creator, which I can’t wait to introduce to you.

Quote from Amazing Resume Creator (Jimmy Sweeney):
…it is easy for a job-seeker to stand out from the crowd in any field and land the exact job interview he or she desired if only they had the properly-worded resume.

I'm About To Turn... Your Worn-Out, Tired, Run-Of-The-Mill, Stale, Overly-Professional, Long-Winded, Big-Worded, Boooriiing Resume, Into... An Attention-Grabbing, Interview-Getting, Job-Landing Resume!

Visit the website of Amazing Resume Creator

Create an Investment Banking Resume – Using Amazing Resume Creator
Unless you really hate writing, otherwise, a DIY resume is good enough for an entry level job. Investment bankers always want the best out of the best. To stand out from the crowd, get Jimmy’s help to craft a best resume for yourself.

Once you’ve got your draft up, make sure you cross check with the resume sample and template I have on this blog as they are specialized for investment banking jobs. Make sure your DIY investment banking resume agrees with my guidelines. Then get someone to proof read for you. Make it flawless before you send it out.

How Does Amazing Resume Creator Work?
As easy as 1-2-3!
1. Point And Click your mouse to choose the TYPE of resume you want to create.
2. Click The "Tailor" Button to begin creating your resume from the template on your computer screen.
3. The Amazing Resume Creator automatically interfaces with Microsoft Word making it easy to customize an amazing resume just for you.

Source: Amazing Resume Creator

How Much Does Amazing Resume Creator Cost?
$39.95, 100% money-back guarantee. Consider this is kind of an investment that will change your life, give it a go.

Test of Your Knowledge on My Blog
What is my suggested ideal length of an investment banking resume?
A. One page
B. One and a half page
C. Two pages

Click here only if you DON’T know the answer

Investment Banking Resumes

Investment Banking Career – Entry Level Jobs IV

More on Sales, Trading and Research

Entry level jobs for graduates are widely available in sales, trading and research at various divisions of an investment bank. The investment banking career sites that I list on the right hand side of this blog, contain very valuable information. These banks all provide very professional internship training to undergraduates. Please do browse these career sites whenever you have a moment.

Bank of America
Today I would want to walk you through Bank of America.

Quote from Bank of America:
We look for both traditional and non-traditional candidates and encourage candidates of all majors and backgrounds to apply. The one requirement for all: demonstrated superior academic achievement.

Qualifications That BoA Want for Sales, Trading and Research
Candidates must demonstrate a combination of academic aptitude, quantitative skills, strategic and creative thinking, and distinguished written and verbal communication skills. Analysts are required to manage several projects at once and work effectively as an individual and as part of a team. Some common driving characteristics we look for:
* Assertiveness
* Attention to detail
* Exceptional academic achievement
* Initiative, team focus
* Intensity and a passion for the markets
* Leadership, self–confidence
* Strategic and creative thinking capabilities
* Strong work ethic
* Strong communication skills
* Dedication to a career in global markets
Source: Bank of America

Traders’ life: I can’t reiterate more, you have to work for long hours as an investment banker. Be prepared to start work as early as 6.30am and work hard continuously for at least 12 hours a day. When a deal is on going, you might need to stay at work round the clock. One of my candidates didn’t show up for a breakfast interview for such reason. He didn’t even notify me or the client, as he was just unable to.

Let’s look at a typical day of a trader.
BoA’s website does not allow a direct link, therefore, click the above link and follow this route:
U.S. Full-Time Analyst / Sales & Trading / Day in the Life

Meet Ali, currently a trader at Bank of America, graduated in 2005 – share his thoughts of working for Bank of America.

Again, BoA’s website does not allow a direct link, therefore, click the above link and follow this route:
U.S. Full-Time Analyst / Sales & Trading / Profile / Ali

Test of Your Investment Knowledge
What is proprietary trading?

Proprietary trading is a term used in investment banking to describe when the firm's traders actively trade stocks, bonds, options, commodities, or other items with its own money as opposed to its customers' money, so as to make a profit for itself.

You would need to be an experienced trader before you can do proprietary trading. Proprietary traders can make lots of money for the bank as well as for themselves. On the contrary, they can also jeopardize the bank. In 1995, Nicholas Leeson, former derivatives trader whose unsupervised speculative trading caused the collapse of Barings Bank, the UK's oldest investment bank. Read more.

Do you want to be a trader? Take a FREE career test!

Investment banking career

Investment Banking Career – Entry Level Jobs III

Sales & Trading

Another Great Way to Start Your Investment Banking Career

Sales people and traders make lots of money. However there is lots of hard work in it, though with lots of fun. Be prepared to work long hours and totally dedicated to your job.

Institutional Salespeople sells securities and investment recommendations, investment management capabilities, and services to large investors typically referred to as “institutional investors.”

Traders are market makers on the floor of a stock exchange required to buy and sell to maintain fair and orderly markets in the securities they are assigned by the exchange. Floor Traders execute buy and sell orders for clients of the firms and individuals that they work for as agents.

Each year, the bulge brackets absorb the best quality candidates from top universities and train them to do sales & trading job. Internship is a two-way street to test if you like the job or if the job suits you. Today, we’ll look at how JPM train their interns and what kind of sales & trading opportunities there are.

Quotes from JPMorgan:
It's worth remembering that our internships are the key recruiting source for hires into our full-time program, so you might find yourself returning to school for your senior year with a full-time offer to join us in your pocket.

What we look for: We recruit students from many backgrounds - but an aptitude for numbers is a must. If you don't have a strong financial or business background, be sure you can tell your story; be able to demonstrate your quantitative aptitude both scholastically (SATs, coursework) and practically (former jobs, for example) and be ready to articulate how your background will enhance your career at JPMorgan.

The most successful route to a career with JPMorgan's Sales & Trading group is through our summer internship program, for two reasons. First, it will give you the opportunity to see what it's really like to work on a trading floor; and second, we hire as many of our full-time analysts as possible from the summer program.

To Get a Taste of Trading Now
An investment banking career is full of challenges. Start challenging yourself today. JPMorgan has designed an online trading game FantasyFutures. Students from the US or Europe can participate. The simulated interest rates game allowed students to act like traders – tracking global markets and taking risks.

Winners will receive an invitation to visit JPMorgan’s trading floor, apart from receiving other prizes. Remember to mark this on your resume in case you happen to be a winner.

Meet Victoria from JPMorgan’s IR Derivatives Trading Desk
Here is what Victoria says: The very first moment I set foot on a trading floor I thought it was a really interesting environment. I think you either like it or you don’t. It’s not always easy and there are constant interruptions, so you need to be pretty disciplined. Personally I really enjoy the energy and the constant interaction. I don’t like it when it’s quiet. Read Victoria’s full story.

Conclusion
As a trader, you need not only to be good at numbers, you’ll also need a personality fit. As Victoria said, “discipline” is important in a trader’s life. Once at the trading floor, you are only allowed to do trading-related matters. Some investment banks don’t even allow their traders to take their mobile phones to the trading floor. As a headhunter, I can only contact my trader candidates/clients after market close, no matter how urgent the matter is.

Test of Your Investment Knowledge
What is proprietary trading?

Check for an answer in my next post.

Do you want to be an equity trader? Take a FREE career test!

Investment banking career