In yet another rumination upon the fact that things aren’t what they used to be, the Times has spoken to a hedge fund manager who laments his lost lifestyle.
Jamie (not his real name), says he was earning more than $10m aged 27. He allegedly attended his local state school before Oxbridge, before working for an investment bank, before leaving for a quantitative hedge fund aged 23 where he wrote algos. It’s not clear where he worked, but he told the Times that he had a 40 year old secretary who picked up his dry cleaning and helped him move house.
Jamie’s current whereabouts are unknown, but the Times notes that hedge funds are having a far harder time nowadays and that Luke Ellis of Man Group informed the Economist last week that he has, “never seen as many people give up as in the past three months.”
Separately, the CFA Institute has produced a helpful online tool showing what happens to its Charterholders around the world.
We’ve reproduced the UK section of this for you below. Interestingly, it suggests a CFA may be a panacea against unemployment: a mere 4% of CFA charterholders both in the UK and globally are out of work. It also suggests that large numbers of CFAs in the UK are either portfolio managers or equity researchers, with the remainder dispersed across a range of functions. Interestingly, a disproportionate percentage of UK CFAs are analysts in corporate finance (7% vs. 4% globally). Hardly any (anywhere) are traders.
The number of non-EU citizens coming into the UK under “intra-company transfers” has risen from 22,000 in 2009 to 29,700 in the 12 months to September last year. (The Times)
Corporate equity derivatives are still a growth area. (Bloomberg)
Thanks to the LTRO, European bank stocks might double this year. (Bloomberg)
Goldman Sachs recorded losses from that business on 17 days in the fourth quarter, down from 21 days in the prior period. (Businessweek)
Jamie Dimon said investment banking and trading will recover from the slump, which is cyclical. (Bloomberg)
Barclays now faces a tax bill of an estimated £300m to pay corporation tax on the £1.1bn of profits it booked on buying back its own debt in 2011. (Guardian)
François Hollande suddenly wants a marginal tax rate of 75% on French incomes above €1m a year. Previously, he’d only called for a marginal tax rate of 45% on incomes above €150k, higher capital gains taxes, and a ceiling on tax relief for the wealthy. (Financial Times)
A pallid and clammy Oswald Grübel announces that the days of banking growth are over. (Handelszeitung)