Although there are many amount companies that go out of their way to recruit only PhDs in physics and mathematics, it remains true that the Harvard MBA is also good preparation for a career in hedge funds. Last year, 1 in 12 graduates entered this industry, earning a median base salary of $165,000 with a bonus of $145,000. If you have the ambition to follow in the footsteps of Bill Acman Where Ray Dalioand you have the opportunity to go to Harvard Business School, the sound career advice would be to take it.
It is of course not as simple as that. On the one hand, you have to apply and be accepted. But it’s also quite expensive – $76,000 over two years. In principle, it’s a great investment in a future career, with a payback period of as little as three months. In practice, not everyone can come up with that much money, and those who can tend to be a bit “samey” in terms of their track record.
Partly in an attempt to improve its diversity, Harvard now makes 200 seats – ten percent of the total class – free. Subsidized places will be awarded in much the same way as financial aid for other “need-blind” university admissions – based on “previous three-year gross income, assets, socio-economic background and undergraduate debt levels”. Successful applicants will still be expected to pay their own living expenses; Harvard estimates it’s about $35,000 a year if you skipping the most extravagant party scenes.
Of course, there might be an implicit expectation that the people who are brought to business school on this basis might be doing something a little more civic-minded than just following the trail to Wall Street. According to Dean Srikant Datar, the stated goal of the program is that “we want to remove the financial obstacles that stand in their way and ease the burden of debt so that they can focus on becoming leaders who make a difference in the world”. Conversely, it’s a bit of a financial recruiting cliche that some companies prefer to take on employees with expensive tastes and high debt loads, as it’s believed to make them hungrier and easier to control.
But on the other hand, it’s a free country, and there’s nothing stopping need-blind graduates from doing just that. Some people go to Nepal and find that earning a lot of money does not make sense to them and they want to pursue their spiritual growth; some people go to Harvard and have the same revelation the other way around. And to get the free tuition, it seems like you would have had to overcome so many other hurdles in your life that you might feel like you deserved a chance to get rich.
Elsewhere, the Financial Times obituary of Anshu Jain was published a few days later some of the others, and is therefore perhaps a little more balanced and less brilliant than some of the others. And the differences are interesting; although someone said that Anshu was a “killer” with “a knife between his teeth”, it seems that there is still no one who has too many bad words for him as a person, but a senior regulator is ready to call his strategy as CEO “bogus and dangerous.”
Which might be the right way to get it – God knows there are too many characters in the market that should be remembered as great banking strategists but not so successful as human beings. But what the anonymous regulator is referring to to some extent is Jain’s determination to maintain Deutsche’s investment banking business model without acknowledging that the industry had fundamentally changed after the financial crisis, as well as his “last man standing strategy” of doubling down when other banks flash. . This points to something that most traders would consider a fundamental character flaw – the inability to exit a losing trade.
In life in general, however, refusing to admit defeat isn’t necessarily a bad thing at all. The obituary recounts that Anshu Jain met his cancer diagnosis in much the same spirit as he faced business challenges – with absolute confidence that a combination of determination and ingenuity would enable him to beat the odds. He maintains his optimism and begins an “exhaustive” program of finding treatments. Just 36 hours before his death, he reportedly told a friend that rumors of his death were “grossly exaggerated”. This attitude bought him four more years, which seems like a good final trade.
Mizuho Securities is 12 years olde in the equity and debt markets and 18e in mergers and acquisitions advisory in the United States (Asian’s leading bank), but it aims to increase its presence, with a combination of acquisitions, “business alliances” and potential cover banker hires. (Japan time)
Mizuho Securities is also looking for ways to cut costs in Europe after losses. Back-office jobs are most at risk, but he could expand his derivatives business on the continent. (Bloomberg)
Watches of Switzerland, London’s largest Rolex retailer, is moving to a new flagship store eight times the size of its current store. This seems either to be a very good sign for the prospects of discretionary income for bankers and other jewel-loving wealthy men, or a very bad sign for the kind of deal it is possible to get on retail spaces at luxury detail. (Bloomberg)
CEO comes to court and demands big investments in risky positions, then blocks other people’s attempts to cut losses – sounds like banking melodrama, but according to claims made in bankruptcy hearings from Celsius, it could have actually happened in the crypto world. (FT)
Credit Suisse suffers from a particular problem in China, where there have been a number of senior executive losses; the supervisor seems to say that there is no point in inspecting local operations until some of the vacancies are filled, which in turn has hindered expansion plans. (Bloomberg)
“Even though I have more than enough money, I can’t stop worrying about it all the time.” This is a common problem; Therapists suggest that worrying about money could be a defense mechanism against thinking about deeper, more frightening emotional issues. (The cup)
The second season of “Industry” is finally being taken more seriously by those who know quality television, perhaps a little less by regulars in junior investment banking. (Atlantic)
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