Interview with Alexander Tatarsky, creator of the quantum fundsubmitted by Golden_Island_Club to u/Golden_Island_Club [link] [comments]
How well do you know artificial intelligence? Perhaps you have never heard of it, or maybe it’s quite the opposite and robots are already managing your capital.
We were able to interview Alexander Tatarsky — an experienced trader, co-founder and financial director of the Mercury Foundation — a fund that manages capital through A.I.! Alexander introduced us to the concept of his organization and explained the unique idea behind the project.
Alexander, why did you start trading? How did you start and why did you decide to choose this particular field?
Many people know that the Chinese word “crisis” consists of two hieroglyphs. One means “danger”, and the other one — “opportunity.” I considered a global financial crisis of 2008 an opportunity. That’s when I began my professional career in the financial markets. Before those events, I was always very interested in economics (thanks to my economic education!) and financial markets, but I focused on 2 aspects: first is financial markets as an instrument of global management of peoples and their well-being, second — financial markets as an example of the fundamental laws of nature. I always wanted to get closer to understanding the essence of these processes.
However, until 2008, I was just a curious observer. I read books, watched major events, learned to compare facts. I was running a business that had nothing to do with the markets. The events of 2008 encouraged me to make my first profitable deals. And then I realized that this field is not only about self-development and curiosity — it could also become a source of permanent income. With the right approach, this income can be much higher than in other sectors of the economy. So the choice was made.
What were the reasons for creating an Investment Foundation managed by artificial intelligence?
Anyone who is professionally engaged in money management considers automation at some point. Computers are much more efficient than human when it comes to assets management. Robots are taking over, so it was a logical step for us. From the very beginning, we realized the inferiority of the ready-made solutions on the market and did not even consider using other people’s services. We could use the A.I, and we did. It was actually not even a question, it’s like asking an artist — why are you painting? Because we are the best at managing money.
What is the market share (in particular, on cryptocurrency market) of the investment funds (including funds managed by artificial intelligence) and how do you handle the demand?
If we talk about traditional financial markets, then, according to the latest data, the share of investment funds in the total volume of transactions amounts to 70%. At the same time, quantum funds account for at least 27% of all transactions on US exchanges. As for the cryptocurrency market, they are so riddled with fraud and unrealized projects that we have long since ceased to care about the competitors.
There are many ordinary funds, but 80% of them close in a year and 95% of them — in three. We do not consider them competitors, as we are focused on long-term work. All their clients will eventually come to us. In long-term, the manual traders do not stand a chance against the robot.
Are there any companies similar to yours in the world?
Yes, sure. In our industry, only a few succeeded in achieving the degree of automation that we have. The most successful of our colleagues use qualitatively different algorithms that still require regular manual testing and customization. In most cases, those “algorithm factories” constantly have to adapt to the new market conditions. Our algorithms require human participation only at the development stage. Simply put, in most cases, operators with remote controls always follow their robots, but our robot can walk on its own.
The market offers a huge number of different robots that promise to increase your capital in Forex, binary options, cryptocurrency. How are you different from them? Is it possible to earn money with such robots?
Yes, certainly. If you are good at trading and investing. If you have clear money management rules backed by math. If not, you can only lose. And robots have one more limitation — they cannot bring you the profit all the time. Such robots offer a huge number of strategies, half of which is profitable, and the other half is not. Because a person is ultimately responsible for choosing strategies. That is, it is not the robot that makes the decisions, but the user who sets the trading rules. In some cases, it helps to earn quickly, and in others — to lose quickly. Such robots do not guarantee earnings, they only ensure fast trading. We have a radically different approach. Bruce Lee said: “I fear not the man who has practiced 10,000 kicks once, but I fear the man who had practiced one kick 10,000 times”. Therefore, instead of ten thousand strategies, we have been developing only one strategy for several years.
The robots you are talking about are the first level. There are many of them and to me they are useless. Among our competitors, there are funds that trade in traditional markets using second-level robots. There are not many of them, but they all deliver consistently good results. One of the leaders in our industry is the Medallion Foundation, created by Renaissance Technologies. For several decades, their mathematical model has been continuously multiplying their capital.
We consistently implement the same model of asset management, completely removing a person from decision-making process. Development will take a few more years, but even now, our robot is already trading at the professional level. The robot needs a person only for controlling and learning new functions.
Some believe that technical analysis does not apply to cryptocurrency, what do you think about this statement?
I actually do not care; it is rather a question of how competent is the person who said this. If it works for you, you can use it. I think you will agree that a professional can play even on one string, and the amateur can find a thousand reasons to give up. The only thing I can do is ask in return — what can the market offer instead of technical analysis? Intuitive news trading? Fundamental analysis? Neural network?
Technical analysis is a complex discipline and it takes a lot of time and mental strength to fully master it. It could take a trader 10 years to learn it. Not everyone succeeds, so technical analysis does not work for everyone.
I favor a more specific approach: if it doesn’t work for someone, they should figure out why, because it is working for us quite well.
Where does your Foundation operate?
We advertise ourselves as a global foundation. In today’s world, good business has to be global. Among our clients are representatives of the Russian Federation, the European Union, Great Britain and China. We continue to expand our reach. As for trade, over the next 6 months we will be able to manage capital on all largest exchanges of the world.
Why is there a minimum deposit amount of $ 10,000?
There are several reasons. First, we need funds to maintain client accounts. We do not charge a monthly fee, only a percentage of the profits. Therefore, the size of the deposit has a lower limit.
Second, $10k is not much for our target audience. It also acts as a filter that shows the solvency and how serious the intentions of a potential client are. We do not target the mass market and do not deal with dumping. On the contrary, we provide long-term, high-quality services for those who can afford it.
Third, the robot independently manages risks and simultaneously controls all portfolios. We don’t like it if someone can’t enter the position because the share calculated for him by the robot is not allowed on the exchange due to restrictions.
Are there any differences in the management of different amounts of investment? If yes, what are they and are there any similarities in the management of investments of one quantitative segment?
Our job is to describe all the differences with strict mathematical formulas and test them thousands of times under all possible conditions. Therefore, there is no big difference for us between a 5 mln purchase or 5k purchase. Everything is described, tested, calculated, everything works.
Differences in the management of large capital are even more drastic. The psychological factor in this case becomes critical. The same trader managing a demo account or a million dollar account will behave like two completely different people and make fundamentally different decisions. Our task is to completely eliminate the human factor from the money management process.
What are the chances for new instruments to get into the Foundation’s portfolio? What is the basis of the selection of certain tools? Are there any common priority tools for different segments of investors?
Any promising liquid instrument can be included in the portfolio of the Foundation, and the choice depends on many factors. The robot evaluates and filters the instrument on the basis of special algorithms and determines the share of an asset in the portfolio based on the results of the evaluation. All decisions must be mathematically justified, taking into account the analysis of the maximum possible amount of data. The more data on the instrument we have, the higher the quality of the decisions made and the share of the instrument in the portfolio. The choice does not depend on the category of investor. If the instrument is promising and liquid, all our clients will get profit.
Can you tell more about the terms of settlements between the Foundations and investors?
If someone in our market guarantees you a good profit and even specifies when you could get it, then I in turn guarantee that this is a fraud. We are most interested in customer profits, as this is the only way to offset the costs of managing his account. Imagine the following situation:
The new client opened a 10k deposit and a month later, he had a total of 12k in his account. At the beginning of next month, we will ask you to transfer us 1k as a fee. 11k remains on his account, but a month later, suppose, unsuccessful deals were made and there is 10k on his account again. In this case, we do not require any payments until the deposit exceeds 11k.
Suppose a month later he has 12k again. Then we will charge 50% of the difference between 11k and 12k, i.e. $500. The fact that the entire team of our foundation has long transferred the management of all its assets to our robot could also count as a guarantee. We have a direct motivation to make trading as successful as possible. We do not use the services of other funds or managers. And the second fact is that the portfolios of all clients, including our personal ones, are managed simultaneously.
Can you share the success stories of the Foundation?
We want to implement a demo account for this purpose. We plan to fill it with transactions and statistics from 2017, copied from real accounts, but without disclosing personal data. The demo-account will include a history of the average client from the beginning of 2017.
It will explain how the robot trades and what profit you can expect from it.
Do you believe that private investors, to some extent, are competitors to investment funds? What, in your opinion, is it more efficient and profitable: being a private investor or investing with funds?
No, we consider them not competitors, but clients. The vast majority of our clients already have experience in investing. Beginners often think they are the smartest, that they don’t need to pay someone 50% of the income when they can easily buy and sell themselves. I admit that in the short run a private investor can earn more than a robot — but definitely not over a long period. The robot ensures a stable result day after day, year after year, while people are prone to stress, illness and psychological weakness.
Also, funds, compared with private investors, have more compelling ratio of risk and return. At some time, a private investor may gain the same profit as a fund. However, the fund will achieve the same profit with much less risk. My money is controlled by a robot, although I believe in my capabilities as a trader.
Does the Foundation have an affiliate program?
Yes, we have an affiliate program, and at the same time, we are interested in collaborating with specialists for mutually beneficial cooperation. For example, we could consider providing service for the service for really good experts in design, advertising and marketing. If you have such specialists, let them send me their proposals and CVs. See contact details on our website.
What kind of future do you see for ordinary investment funds and funds like the Mercury Foundation?
It is clear to me that the share of funds managed by robots will grow steadily. Most likely, in a couple of decades only old-timers will manage money manually.
Robotization applies to all spheres of life and investment has already come into play. For example, the head of Japan’s Government Pension Investment Fund — the world’s largest pension fund — believes that artificial intelligence will soon completely replace asset managers. And I fully agree with him.
And the largest hedge fund Bridgewater Associates is developing a decision-making algorithm that can replace all management personnel over time.
How do you look at the cryptocurrency market from a global perspective? Will the Bitcoin climb to 20,000$ again? And what will happen to the altcoins?
If we talk about the long term prospect, like 3–5–7–10 years, then I’ll say that today we see the early stage of the cryptocurrency market. Over time, its capitalization will be measured in trillions of dollars. The best projects of this field will become an integral part of our lives. Many of them will become new Google, Facebook, Apple and Amazon.
However, this will happen gradually. In order to become a mature sector of the economy, this market will have to go through many challenges. It will face issues of legislative regulation and technical problems. The scaling and bandwidth issues of most networks are still relevant, as well as legal issues. Most states are just beginning to explore the risks and opportunities associated with these technologies. And the promotion of such technologies is still very dependent on states and supranational bodies. If we talk about the short and medium terms, the prospects are not very bright.
I think that in the near future the bitcoin will certainly not reach the 20,000$ mark. We are witnessing the strongest bear market and must act accordingly. The time for positive medium-term forecasts has not yet come. The industry was severely overcrowded in 2017. There was too much hot money, many economically unfeasible projects and excessively high expectations. The market will need time to stabilize and consolidate. Most likely, we are in for a rather complicated and dangerous period of instability in the market. Obviously, this will be accompanied by some cleansing of the market from weak, incompetent and unclaimed participants.
This is a necessary stage on the path towards development. I think that 80% of altcoins known to us will depreciate and disappear in the next year or two for objective reasons. It will be a time of natural selection. However, strong players will only strengthen their positions in the market. Unfortunately, there will not be many of them. Therefore, in the near future, all investors will need to take a good care of the management of their portfolios. Despite the rather grim short-term and medium-term expectations, there will be some positive developments on the market. Some cryptocurrencies are likely to exceed their all-time peaks next year. And some will just look stronger than the market. This will be enough to generate profitability even under such difficult conditions. Therefore, the main task for the near future is to manage risks in a competent and very conservative manner and select the best ones on the market for investments.
From a professional point of view, what would you wish to partners of our club?
Depends on their goals. If they invest for the sake of emotions, then I wish them good luck and health. If they do it to earn money, I advise you to consult with professionals. This applies not only to investments, but also to any area of life. If you want the task to be solved as accurately as possible — always contact the best professionals available. And always keep learning. Your knowledge is your most reliable asset.
What books would you recommend for beginner traders?
If you decide that you are ready to turn trading into your profession, then start eagerly exploring everything available to you. Everything about financial markets, about macroeconomics, about psychology, about analysis and forecasting. Do not forget that money management skills play a huge role here. Ralph Vince will help you figure it out. Even if your analysis of the markets is very good, you will lose everything eventually if your money management skills are subpar. Now is a great time to learn, you have hundreds and thousands of books available on all aspects of this profession. Someone will enjoy the works of John J. Murphy or Jack Schwager, someone will learn from William D. Gann or Robert Prechter. And remember: knowledge is more important than capital!
We thank Alexander for such a detailed story about the Foundation, as well as for his sincere desire to share his opinions and forecasts. If you want to entrust the management of your funds to the Mercury Foundation, type “I want to invest in the Mercury Foundation” in the personal messages of the group.
|I have a good friend who is a VP at your firm . They blamed the entire Financial crisis on ' poor people who could not afford their mortgages ' they said this was pretty much he opinion among the investment banks . How do you feel about what happened to Greece and Goldmans hand in it ?||That is not true. Opinion is very much split within the investment banks and there is no right or wrong answer. I personally don't believe at all that the crisis was caused by 'poor people' - and I don't like that sort of categorization of people in the first place. There are perhaps 15/20 different institutions you could blame for the crisis, there's no way of isolating individuals. I'm not sure what exactly you think GS's hand in the Greece affair was. Of course it's a sad story and I feel remorseful - I recently donated £50,000 at a charity ball to help rebuild one of the islands which has almost been burned to the ground. But ultimately Greece employed GS at the time because they wanted to fudge their finances so as to meet entry requirements for the Euro i.e. the greek government was knowingly employing GS to help perform an extremely risky task - GS didn't force anything upon them. If the experiment explodes 10 years later (as it did), should GS really be the party to blame?|
|The next day, you are flipping through television channels and randomly come across a pre-season CFL game between the Toronto Argonauts and the Saskatchewan Roughriders. Knowing your inevitable future, do you now watch it?||Yes of course i fucking do. The future is inevitable. Chuck Klosterman i like your name.|
|I love seeing the ignorance that emerges in these AMA's relating to investment bankers. I am really interested in a career in either IB or Consulting, have a few questions for you.||Thank you to fletch below for answering this question.|
|1) How did you cope with the hours? I like working hard, I like working for my money but I also like enjoying free time and having a social life. When working a 100 hours as an analyst that would certainly have to suffer 2)What were you academic results like through your degree? I'm currently in my second year and will be realistically looking at 2.2, 2.2, 2.1 and 2.1 (years 1-4). This summer I'd hope to get an accountancy internship in one of the big 4 followed by an internship next year in one of the large IBs. I know there's more to a candidate than solely their academic credentials + internship but would this stand me well for a BB in London? (Top Irish university, undergrad will be in Business and French) 3) What is it that makes you enjoy this job? I know the paycheck is certainly a bonus but you've said there's more to it than that?||Whatever your breakdown between modules is, you need a 2.1 overall. Even if your average is 60% or 61%, that's enough to get you past the minimum requirements and through to interviews. After that it's up to you - they'll take someone with a good business mind and strong communications skills irrespective of whether they average 60 or 78 or 92. I disagree with him. My job is extremely rewarding and i wouldn't swap it for any other industry at the moment. If you want evidence of people enjoying their jobs look at the number of years they spend at their respective firms. Most of the partners at GS are 'home-grown' and have spent 20/30 years sweating away but don't regret it for a second.|
|Do you realize that in countries like Spain you're seen as an evil person that only wants to get profit and don't have any soul or feelings and probably kicks puppies for fun? If so, how do you feel about it?||Yes and understand their anger but it should be re-directed to politicians!|
|Proof? and of course... how much did you make in 2012 approximately?||Approx 600k. How do upload proof e.g. photo evidence?|
|Sorry, new to reddit!|
|Do you have free ticket for me? Always looking for handouts.||What is it young people say, lolz??|
|I'm very curious of your opinion of Secretary Geithner's role in LIBOR. Do you think he was guilty? innocent? Thanks!||LIBOR scandal is way too complicated to explain at 2.30 am after a few beers. Many active players are implicated and i think he will be seen in the wrong eventually like many others.|
|What hours do you work?||Approx 80 hours a week not incl. flight time I go to festivals in Europe but would love to go it. Do you have free ticket for me?|
|If the concept and idea of a monetary system was replaced with something better (hypothetically) what would you do? As in for a career or what not since now you are jobless.||Resources will always be scarce so someone will have to ensure an optimal allocation. There will always be a market of some kind whether it be a public market or an internal government one.|
|Hypothetically we could have unlimited power, molecular production, and master matteenergy conversion. Would that change your answer?||Good interview question. I'll keep it in mind.|
|In your view, are there any regulations that could meaningfully alter the moral hazard typified by the 2008-2009 bailout of the financial sector? If so, what might they be? And if not, to what extent does regulatory capture play a role?||Regulatory capture is a seriously problem not just in banking e.g. also in the energy business. How do you reduce it? It won't happen unless the public demand it, as everyone with power tends to benefit from it and so they won't make meaningful steps to change anything, i.e. its a win win situation for government and business. However it needs more than just 'occupy movements' but rather i am talking the mass voter population.|
|Have you seen @gselevator on twitter? if so have you ever contributed/is it legit?||Haha yes i have seen it and no its not legit, well at least i think its not. Seriously though the elevator chats can be quite entertaining and revealing.|
|Do you use a mouse when you work on excel?||Are you joking?|
|In your opinion, do you think the money you make is worth the hell that you go through to make it?||I love my job and so i am lucky that the money is not the only motivator.|
|But yes i love checking my bank balance at an atm.|
|How can i break into finance with a sub-par gpa?||Network and try non BB firms.|
|A company founded by 100 duck sized horses. or A company founded by 1 horse sized duck?||100 duck sized horses every time. Basic risk management theory - don't put all your eggs in one basket. If that 1 horse sized duck isn't exceptional, your business is going down the tubes.|
|Prior to the collapse, did you have any idea what was about to happen?||It was getting obvious that there was a bubble, but never predicted how great the fallout would be and that in 2013 we would still be suffering|
|What do you do day to day?||I work in the energy field in Europe but don't want to get too specific. Day to day we advise natural resource companies on all things financial such as m&a and financing strategy and then execute on their behalf. So I am on the corporate finance side rather than sales and trading. However I work closely with the syndication and sales guys such as if we are executing an IPO or a follow-on share offering.|
|I have a buddy who's small but established clean tech company needs money building biodiesel manufacturing plants around the US that run off garbage and wood chips. The technology is actually coming from a company based in Sweden. Can you help him on the money side?||Send me a link to their website.|
|I find clean tech very interesting.|
|How did you get your job?||Did a summer internship then got FT conversion.|
|What college did you go to?||I went to LSE (university in the UK)|
|What jobs did you work before getting this one?||Did another internship whilst at university at an oil company.|
|At what age did you get this job?||22.|
|I hear the GS company culture is like " a frat on steriods" true or false?||False more than true but depends on team.|
|Is it as cut throat as I have heard with the bottom 50% of people getting sacked each year to make way for new guys who will probably be sacked the year after?||Bottom 5% is more accurate. 7-8% in a bad year, 3-4% in a good year. It's a fine line between 'cut throat' and having a 'healthy competitive atmosphere'. But we'd be out of business very quickly if we kept firing half of our staff every year...|
|Is there any stock I should look into in 2013? Long term or short term.||Short term- African Barrick Gold. The chinese walked away and so the share price plunged and despite serious operational issues, the massive drop has presented a golden buying opportunity.|
|Long term- anything to avoid inflation, inflation scares the crap out of me and is going to be a big problem in the Uk and elsewhere in the future.|
|Also buy into soft commodity boom e.g. meat in africa, think zambeef etc if you can find an attractive entry point.|
|What's the best preparation for an interview with an i-bank? I'm over here in the states and come from a non-target.||Read WSO, the forums are full of useful hints and tips especially for non target guys. Depending on what area you are applying for, make sure you know some really good examples and stock pitches as it is amazing how many candidates lack knowledge e.g. if applying for ECM for god sakes know some of the recent IPO's and likewise for equity research have good stock pitches and have conviction when presenting. Best of luck!|
|How important is your undergrad majogpa I'm double majoring in Econ/Conflict resolution studies with a possible minor in poly sci (depending on how the credits work out) I got a 3.9 gpa last semester but it only brought my overall gpa to a 2.4 because fuck klonopin. I should have at least a 3.0 by graduation, but I'm wondering its worth it to pay for and retake my first semester. Can I have $373 dollars? :D :D I promise only to get moderately drunk with this money. Sorry, a lot of questions, thanks for answering. Oh also, one last thing, all else being equal, is calc I enough math to apply for analyst job? or do I need more?||Undergrad course choice is not that important for IBD but obviously for more quant roles you need maths skills Again i am sorry but i am not very clued up on GPA Ok i give you money but first you have to register yourself as a charity so that you can gift aid it and get much more!|
|Where did you go to college?||LSE.|
|As an undergrad? How hard was it? I hear it's very difficult.||Yes, undergrad.|
|Harder than most places depending on your course. Especially as you are competing with loads of kids from Asia who do extra calculus to relax.|
|How do you see regulation affecting the overall banking culture? Everything I have been reading and what people have been saying is that the culture is changing. Have you been seeing this?||I recommend reading "The Culture of Success" by Lisa Endlich.|
|Also how do you like the goldman culture?||Regulation is hurting us...but: Link to business.financialpost.com|
|How much total did you make in each of your years at the firm?||I don't want to get into specifics.|
|But for your first three years as an analyst roughly 50k-70k (£ not $)|
|As an associate 120k-160k.|
|After that the numbers get exciting.|
|What tools do you use on a regular basis?||Excel, Outlook, Excel, Outlook, Excel, Outlook...powerpoint.|
|What is the biggest reward of working in IB? Where I study, students with high grades are pushed to chase the prestigious internships firms like GS, MS, etc offer. Their reasoning why they chase these jobs is that they think it is the highest (prestige) in finance they can go or are attracted by the money. It seems shallow to me. What does IB offer that makes your career personally fulfilling? Why didn't you choose to work elsewhere?||I find what i do at the front end of the energy sector fascinating. If your interested in business or globalisation or other similiar areas then IBD is pretty much at the cutting edge of it.|
|Thanks for the reply! When you were first starting out at GS, were you able to balance a personal life aside from your work? Has it gotten easier as you have gained more experience? Would you recommend IB as a field to pursue to your own children today? Thanks again!||I'd say during my first 3 years as an analyst the 'balance' was almost non-existent i.e. i was regularly working 100+ hours/week. Since then it's become easier year by year and i think that's true for most. And yes certainly i would encourage my children to pursue it - not that i have any yet.|
|Where did you go to uni what was your gpa? how many physics majors work their? did you start off as an intern? sorry for rapid firing questions.||LSE (london school of economics) - first class honours but don't know how that translates into GPA.|
|I know only 3/4 physics majors in the office at the moment.|
|Yes started as an intern.|
|Do banker run the world? how much political influence do they really have?||It works two ways. Some bankers have their fingers in politics in a way they perhaps shouldn't. But equally many politicians have their fingers in banking and can force our hands.|
|How hard is it for a non ivy leager studying finance to get an entry level job at GS? what about internships?||Tough. But with enough internship experience beforehand it's possible.|
|What do you think of Forex? Would you ever trade on it with your personal money?||Difficult to answer - you can trade forex in a million different ways - some ways are more interesting than others. I don't personally trade it, but others forge a very successful career out of it.|
|What was your bets investment in? (If that's how it works)||That's not really my role in IBD.|
|But outside GS I invested in the Shanghai property market a decade ago or so. My 4 flats there are now worth 10-12 times what they were worth then.|
|WTF caused the 2010 flash crash?||Good question. Nobody knows for sure.|
|From the link you've provided, I find no.2 the most plausible explanation. But I would also add 6. UBS did something stupid again.|
|As hardcore capitalists what is your feeling about (management of) banks that seem to live under the impression that profits are for a happy few while losses should be carried by tax-payers?||That's not what I believe at all.|
|And by the way all of us are tax payers too. The top 5% contribute approx. 50% of the government's taxation revenue. So if losses are being 'carried by tax-payers' - that doesn't exclude people in the banking industry by any means.|
|Matt Levin at Dealbreaker (former GS guy) describes Investment Bankers as "Travelling money salesmen". Do you feel that this description is apt?||The operative word in your question is 'former'|
|Do you think that's how he described investment bankers whilst he was still with the firm?|
|People tend to get very bitter and sensitive after they get fired. See Gregg Smith for further evidence..|
|Is an MBA necessary to be competitive when looking for a job or is a B. Comm enough to compete with others when looking for jobs in the industry?||Depends on what entry point - if you do an mba then you apply for associate entry whereas b.comm is an undergrad degree and so you apply for analyst roles. If you do a b.comm at a top university/college and get some internships then you should be well placed. Good luck!|
|Do any of your co-workers frequent Reddit?||I imagine less than 0.1%.|
|Then again 2 people on this feed at least have claimed to be my co-workers, so who knows...|
|Since you're new to Reddit, what made you want to do an ama here?||I'd like to alter the public perception of bankers - not all of us are the obnoxious greedy individuals you read about in the media.|
|I'm also extremely interested in hearing what non-finance people see as our key economic issues at the moment - this seemed a good way to find out.|
|Proof?||How do i upload photos? i will upload photo proof. Sorry not very experienced with reddit!|
|I am a senior in high school and I am interested in majoring in either accounting or finance, but I don't think I know enough about either career path to make the best decision, can you explain the large differences the two paths I would go down depending on major, or any advice that may influence my decision that I would not know at this point?||What you choose to study doesn't necessarily determine the industry you'll end up in. We have guys in the office who studied history, languages, even medicine. Just go for what interests you the most and focus on getting high marks.|
|Curious as to what kind of degree you hold/what was your GPA in college?||BSc. Economics degree from LSE. First class honours, don't know about gpa|
|I used to work for the swiss banks and swiss stock market indirectly, and have a few friends in the banking business, including GS and Nakamura in London. What is your personall opinion on prostitution, cocaine, and medication misusage in your business? Also, also what is your stance on GS' questionable involvment in Backpage.com?||With regards to backpage.com, the guys on the deal did not do their KYC checks properly. KYC checks are crucial for banks- your reputation and future success is more important than any single customer. Look up riggs bank and the Obiang family and then you'll see!|
|Possible. But realistically those kind of excuses are given no matter what really happened. For a company as big and powerful as GS I can only take it with a grain of salt. Are you content in the way GS does business from a moral point of view?||It's either a pinch of salt, or a grain of sand...|
|Thanks. I'm not a native english speaker and have not used it regularly for years, so it's gotten pretty shit. Any chance you answer the other questions?||Yes, apologies. I think some of our deals have been morally reprehensible in the past. The same goes for any major investment bank. But i think we've done a very good job in 'cleaning up our act' over the past few years and the public has played a large part in that. With any luck we will see a much healthier banking industry soon.|
|How accurate is what is said on the Twitter handle @GSElevator?||It's grossly exaggerated, but not entirely inaccurate...|
|You guys got trolled hard. A GS IBD guy not knowing how to upload something to the internet? Seriously wtf. Probably some guy from wso who wanted to feel like he was "in".||Link to i.imgur.com Just doing some work now! Link to i.imgur.com In case you wondered what Lloyd's signature looked like.|
|Is there anyway you can help me out, connections or anything, someone I should talk to to get a interview? Can you interview me, I shall forward you my resume!||Private message me and we will discuss. Sure i can help you out. I know how tough it is for you guys who are trying to get in!|
|Any thoughts on the MSI/SSG mini-scandal this week?||Yes but won't comment.|
|Very hush hush.|
|I also work for GS. Which building are you in? I'm based in PBC. Also IBD, North. Would do an AMA and provide proof.||I'm in PBC too, moved from RC quite a few years ago. I'm not sure exactly what sort of proof i'm supposed to provide...?|
|Would you say you were groomed for this kind of work from a young age? LSE is an elite school. Did you go to elite private schools growing up or were you an exceptional student at a normal school?||Yes, Jimmy groomed me from four years old|
|Do you like your job, or should i say career?||Yes. If i did not then i would go and sail around the world again.|
|From your experience, how relevant is CFA nowdays?||Definitely worth doing.|
|How large was your Xmas bonus and did it get taxed over 50%?||See below - total comp was c.600k and yes taxed above 50%|
|You said in other replies that you were 22 when you got this job and make 600K now. How old are you now, and how long did it take you to get the that salary level? Is it all commission?||Was analyst at 22 and then moved up the ranks. Just turned 30, feeling old now!.|
|Can you give some insight on the business model of Investment banking? (I have no clue to be honest) . And what does a portfolio manager do exactly?||Portfolio manager is not IBD. He/she would work in investment management e.g. for blackrock or GSAM or a hedge fund.|
|I'm currently writing a thesis on the future of rentierism in the gulf with an emphasis on Saudi Arabia. I don't have much of an economic background apart from this, but the international energy market is obviously important to my research. Can you recommend any good (preferably free or low cost) primers and newsletters on the subject?||Hmm there are many on energy market but not too sure about rentier specific ones. Will have a think. I did my university thesis on Saudi and so will have a dig around.|
|How do you live with yourself? Knowing that the company that you work for doesn't give a fuck about you or anybody. All they care about is money. They have ruined america many times over. Seriously, how do you live with yourself?||Actually our business is dependent on America and more importantly the rest of the world's prosperity. So actually our interests are nicely aligned.|
|Link to www.rollingstone.com. Seems to me like your bosses and former bosses don't give a flying fuck about anyone but themselves. Can you name one good thing Sachs has done since you have been there?||I think you meant 'don't give a flying fuck" in your comment.|
|Do you happen to work with quantitative analysts?||Depends which deal we are working on. Sometimes we need them, other times we don't.|
|What's your retirement savings invested in?||Property (international and uk), shares mainly through tax efficient ways e.g. isa and EIS, pensions and artwork.|
|No swiss bank account i am afraid.|
|"The first thing you'll realize is that they are extremely disciplined. You would never come across a Goldman employee, who would, after two or three beers, say "My colleagues are a bunch of dickheads" From Money and Power William D Cohan. What do you have to say about this?||I agree with it.|
|What advice would you give someone who is interested in going into finance and is currently in university. What would you have liked to do in your time spent at LSE now looking back?||Party more! You only live once. You can have that advice for free.|
|Thanks for the AMA. Do you know anybody I could speak with regarding interviewing and internship opportunities?||Private message me.|
|Doing an AMAA are you putting your job at risk for releasing company secrets/opinions whatever?||I've not released a single company secret.|
|Edit: added an A to AMA.||There's nothing in my contract to say I can't express my own opinions.|
|What do the hopes and dreams of Americans taste like?||Raspberry sorbet, in my opinion|
|What is your feeling on the separation of traditional banking and investment banking as is proposed by the FSA?||I think overall it's sensible - Barclays being the best example of why they should be separated.|
|At GS specifically of course we're not involved in traditional retail banking at all so it's not the most pressing issue for us at the moment.|
|You mentioned 80 hour work weeks. Could you explain the timeline for your typical work day. Do you work 7 days per week? Is your work more project based where you go non stop and have some time off between projects?||There's no typical working day - some days are 18 hours and others are 12. Depends entirely what stage of a deal we are at. Generally I work 5/6 days a week, but keep in email contact with the office 24/7.|
|Yes, entirely project based. But if we are doing our jobs properly there's not much 'time off' in between.|
|I'm currently on target for a 2:1 or a first at university in my economics degree. But due to a slight hiccup in my a-levels, in which i got A* A C, still managed to go to a top 10 university but do they look at the C, which was in maths.||Your university grades are definitely more important. If you do well in a mathematical module at uni that will allay any fears they have about an A-level grade.|
|Do they look at a-level grades and expect a minimum maths grade? I'm not bad at maths by any means, just an unfortunate anomaly in the exam season.||Which uni are you at and what do you study?|
|Manchester and economics BA - but i have econometric modules and another mathematical module for 2nd year.||Any chance of switching it to a BSc? Immediately reassures employers about your quantitative skills..|
|Hello there, first of all I want to thank you for doing this AMA. I am a dutch college student and currently I'm writing an essay about the BRIC countries. I used your book to write down predictions of their economic future, and I'd like to ask: did you participate in writing that book?||Are you referring to Jim O'Neill's book? I have a copy on my desk, but no I wasn't involved in writing it.|
|What do the guys at GS think about @gselevator?||See same q&a earlier on!|
|How often do interns get recommended to come back?||In a good year, approx. 50% of an intern class will get hired.|
|In a bad year (2008 for example) perhaps only 10% or 20%|
|Any opinion on Nautilus Minerals?||Can't comment on that company i am afraid.|
|How do you feel about manipulating the currency markets to screw over the average retail trader?||I don't know what you are talking about.|
|Have you ever seen American Psycho?||Yes.|
|I am going to copy and paste this in an email and send it around my team. You will famous at the firm, well at least in my team in london anyway! Yes of course i fucking do. The future is inevitable. Chuck Klosterman i like your name.||That would also be an awesome interview question! And i give them 5 secs to answer.|
|I highly doubt GS interns work for free. I've almost never heard of an internship in finance that didn't pay -- most firms I've encountered usually pay the same base wage as the first year full timer positions you are interning for.||Interns in front office at GS in london get circa £42k pro rata. So not bad for a summer job and remember no tax as they are below threshold across the year!|
|Gold Mansachs.||Not sure about that one.|
|I prefer Goldman Snachs, the name of our canteen.|
|Yes, Jimmy groomed me from four years old||But yes went to a private boarding school before. Widening the diversity of applicants in IB is a key target for HCM.|
|What is the future of investment banking in a new world order where both governments and the people are fed up with the excesses that led us into this credit crisis.||The industry is always evolving, that's what makes it an exciting industry to be in. I imagine it will take us a good few years to fully regain the trust of certain clients, but ultimately if this whole saga causes us to readdress our methods and practices to improve our service then in the long run it's a positive outcome.|
|PS. Do you not think people should be fed up with the governments too, as well as the banks?|
|Not OP but I can answer this as a 2012 intern who got converted for Programming. A Math degree is a good +. There are 2 ways. Either join in as a programmer, show your merit and change departments, ie move to Quant side. Other option is to get a MBA, and join the I-Banking dept you want.||What's your name?|
|Do you have any books or resources you'd recommend the layman for learning investment skills (i.e. the wealthy barber) I ask because i feel there is a lot of crap out there and would like to genuinely learn.||I have never heard of the wealthy barber.|
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