Chase Coleman – Hedge Fund Trader
Tiger Technology Management
Age 31 (2007)
As my blog is for young bankers and those who want to start an investment banking career, I am now going to start a series of success stories about those of 30 or even younger. Here is a young man who qualifies to retire young and retire rich. Chase Coleman made US$50 million at the age of 30.
Trader Daily has an annual poll of Top 100 Hedge Fund Traders. In 2005, Chase Coleman was the youngest on the list. Let’s compare his estimated income between 2006 and 2007.
June 2006
Chase Coleman City: New York
Firm: Tiger Technology Management
Age: 30
CONSIDERED ONE of the top young hedge-fund traders today, Charles “Chase” Payson Coleman III is a descendant of Peter Stuyvesant, the last Dutch governor of New York — and the man who constructed the wall that gave Wall Street its name. Now that’s a pedigree. Coleman had a stellar year in 2005, with returns of more than 40 percent across his $2 billion– plus portfolio, including some significant bets on several small-cap stocks in China and Europe. Coleman also got married last year. His clients love him as well.
Estimated Income: $40 - $50 Million
Source: Trader Daily
April 2007
You needed to have made $50 million in 2006 just to gain admission to this list. You needed $1 billion in annual comp to crack the Top 5. Behold capitalism’s ultimate honor roll — the fourth annual Trader Monthly 100.
Chase Coleman City: New York
Firm: Tiger Global Management
Age: 31
One of the youngest members of the Trader Monthly 100, Coleman now manages roughly $2 billion in assets; his returns last year were in the neighborhood of 30 percent.
Estimated Income: $75-100 million
Source: Trader Daily Couple of posts ago, I mentioned that Dow Kim of Merrill Lynch quitted his US$37-million job to start his own hedge fund. Looking at Chase’s income, will you support Kim’s decision?
Retire Young Retire Rich
Sigurbjorn Thorkelsson - Lehman Brothers
How would you target yourself in the first six years of your investment banking career?
Analyst? Associate? VP? D? MD…? If you are good enough, people won’t care how old you are. Couple of days ago, Lehman Brothers announced their appointment of Sigurbjorn (Siggi) Thorkellsson to the position of Head of Equities, Asia. Siggi made himself an MD at Lehman six years after obtaining his master’s degree from Stanford. In 1998, at the age of 32, he was the Co-head of US equities derivatives at Lehman, based in New York.
Investment bankers have to love New York, London, Tokyo and Hong Kong. Siggi is a good example. After heading the equity derivatives trading team of Lehman at New York and London, he’s marching off to Tokyo in his new position. I’ll talk about living in these cities later on.
Sigurbjorn Thorkelsson will relocate to Tokyo as Lehman seeks to build out its equity franchise in Asia. June 5, 2007
Sigurbjorn Thorkelsson - Bio
1966 Born
1990 Degree in Mechanical Engineering, University of Ireland
1992 Master in Industrial Engineering and Finance, Stanford
1992 Lehman Brothers
1994 CIBC
1998 Managing Director, Lehman Brothers, Co-head US Equity Derivatives, New York
1999 Board Member, Lehman Brothers
2004 Head of European Derivatives Trading, Lehman Brothers, London
2007 Head of Asian Equities, Lehman Brothers, Tokyo
Thorkelsson has headed the European equity derivatives and convertibles division for the past three years, overseeing trading, sales and analytics for the businesses. He joining the bank in 1992, but left between 1994 and 1998 to work for CIBC. He rejoined Lehman Brothers’ equity derivatives group in New York in 1998, and took part in the establishment of a structured products trading group. He has since taken on a number of roles including co-head of US equity derivatives trading and head of European equity derivatives trading.
Source: FinanceAsia.com Is investment banking your dream job? Take a FREE career test!
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Dow Kim - Merrill LynchHow are you going to spend US$37 million?
Couple of posts ago, I mentioned that global heads’ and CEOs’ income has no ceiling. But is there a ballpark? Yes, Dow Kim, was reported to be paid US$37 million last year. In May 2007, one of the hottest news on Walls Street was his resignation from Merrill Lynch to set up his own hedge fund.
Dow Kim is the Co-President of the Global Markets and Investment Banking group at Merrill Lynch. What is the temptation of running a hedge fund? How much can a hedge fund manager earn? Read this.
Really Big Bucks
In 2006, three hedge fund managers took home over $1 billion on the year, according to Alpha magazine's new list of the top 25 fund earners. Read more.
Dow Kim started his career as a credit analyst/derivatives trader at Manufacturers Hanover Trust in 1985. In the first nine years of his career, he managed to survive through the merge with Chemical Bank. At the age of 28, he made himself the head of derivatives trading at Chemical Bank, Japan. At the age of 31, he was the head of derivative trading of Merrill Lynch in Japan. Today he is the second-highest-paid executive at Merrill Lynch, after the CEO Stan O’Neal.
If you are doing as good as Dow did, you can also make yourself a department head before 30. Department heads nowadays make between US$6.25 million and US$2.5 million depending on the size of the investment bank you work for – according to Investment Dealers’ Digest.
Dow Kim – Bio
1963 Born
1984 BSE, Wharton
1985 Credit Analyst, Derivatives Trader, Manufacturers Hanover Trust
1990 MBA, Wharton
1991 Head of Yen Options Trading, Japan, Chemical Bank
1994 Head of Derivative Trading, Japan, Merrill Lynch
2000 Head of Fixed Income, Japan / member of Management Committee, Merrill Lynch
2001 Head of Global Debt Markets, Merrill Lynch
2004 Co-President of the global Markets and Investment Banking group, Merrill Lynch
Dow Kim is an Executive Vice President of Merrill Lynch & Co., Inc. and President of the Global Markets and Investment Banking group. In this role, Dow shares responsibility for Merrill Lynch’s sales, trading and investment banking activities worldwide with Greg Fleming, who is also President of Global Markets & Investment Banking.
Prior to his current position, he was senior vice president and head of Global Debt Markets from 2001 to 2003, with responsibility for all debt sales, trading and origination activities on a global basis. Before that, he was managing director and head of the Global Enterprise Solutions Group, an integrated global derivatives and foreign exchange group from 2000 to 2001.
Prior to moving to New York in March 2000, Mr. Kim managed the firm’s integrated fixed income business in Japan for 3 years and was a member of the Executive Management Committee of Merrill Lynch Japan, Inc.
Mr. Kim joined Merrill Lynch in January 1994 to manage the Debt Derivatives Trading Desk in Japan, and subsequently served as a Managing Director and Head of Debt & Equity Derivatives there.
Prior to joining Merrill Lynch, Mr. Kim worked for Chemical Bank from 1991 to 1994 in Tokyo as a Vice President and Head of Yen Options Trading. From 1985 to 1991, he worked for Manufacturers Hanover Bank in New York as a credit analyst, a commercial banker and derivatives trader.
Born and raised in Korea as well as in Singapore and the U.S., Mr. Kim earned a BSE from The Wharton School in 1984. During nine years with Manufacturers Hanover/Chemical Bank, Mr. Kim took part in The Wharton Executive MBA Program and received an MBA degree in 1990. Mr. Kim also completed the Advanced Management Program at the Harvard Business School in
November 2000.
Source: Bloomberg Answer to my previous question: What is Marshall Wace TOPS?
Most hedge fund managers trumpet the brilliance of their own trading strategies and, given half a chance, disparage their brokers’ ideas. For one thing, it helps to justify their high management fees. Even traditional fund managers have been building their own teams of analysts, to avoid having to rely on brokers.
So Marshall Wace, with $7.5bn under management, is something of an anti-hedge fund: it has become one of Europe’s largest hedge funds by championing the value of brokers’ ideas. The fund’s TOPS system captures the best “sell-side” strategies electronically and trades on them. Almost 200 brokerage firms feed ideas into the system and the best performers are rewarded with additional trading business.
Source: FT
More about TOPS
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