Week 2 of IBD Internship: Hitting the Desk

Mod Note (Andy), Throwback Thursday, this was originally posted on 7/2/13.

The very talented author of this post, moneymogul, is also the author of our Finance Internship Guide. Want to read more of his stories? Order the guide now for 80 pages of extremely detailed day-by-day reports from an actual bulge bracket investment banking intern.

This week's report is a continuation of Week 1: Training Week.

Note that I AM a bit further into my internship than these reports come out and things have gotten significantly busier. Details, names, etc. have been scrambled in order to maintain some anonymity. Let me know if any questions. As these reports are a pretty big time investment on my part, I am considering compiling them into an offsite blog so that they can be accessed by a wider audience; I do plan on continuing to post them here though.

Monday & Tuesday


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Google's New Wireless Service: Project Fi

What do you guys think? Will this be successful in the long term?

From TechCrunch (link inside post):

As rumored for months, Google has just announced plans to offer its own wireless cellular service. Here’s what we know so far:
It’s called “Project Fi”
It’s for Nexus 6 owners only, at first.
It’s invite only right now. You can sign up for an invite here.
It’s built on top of Sprint and T-Mobile’s networks
Subscribers pay $20 for unlimited talk/text, and then pay $10 per gig of data. So a 3GB plan would be $30 on top of that $20, coming out to a total of $50.
You only pay for what you use, but in sort of a strange way: if you pay for 3GB of data per month ($30) but only use 1.5GB, you’ll get $15 back at the end of the month.


The Search for Investment Serenity: The Look Back Test!

Late last year, in a post titled “Go where it is darkest”, I argued that the best investment opportunities are likely to be found in the midst of fear and uncertainty. I looked at two companies, Vale and Lukoil, that were caught up in perfect storms, where commodity prices had moved against them, the countries (Brazil and Russia) that they were located in were in turmoil, the local currencies were in retreat and the companies themselves faced corporate governance questions. I concluded that post with the statement that I was investing in Vale and Lukoil, notwithstanding the high risk in each one and the uncertainty that I felt about valuing them, because the risk/return trade off seemed to be tilted in my favor. A few months later, with my investment in Vale down substantially and the investment in Lukoil treading water, I decided to revisit the valuations.


Webinar Rewind - Week in the Life of a Private Equity Analyst + Q&A

In case you missed our December 22nd webinar entitled Week in the Life of a Private Equity Analyst, have no fear. The full recording of the webinar can be found below (free until Thursday night when it goes into our video library). Do you want to a 1 on 1 mentoring session with Chris? Click below:

SIGN UP WITH CHRIS

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All rewinds will be on Monday / Wednesday / Friday.

And, as always, if you want to sign up to hear about upcoming webinars before they happen, sign up inside the post...


Directional trader paths

Hypothetically speaking, if someone was an outcast in society and possessed no other talents or ability to work a normal corporate job, but had an amazing talent to predict market prices with psychic-accuracy and make directional bets that would permit him to have a double digit Sharpe ratio, would he be able to make a living on Wall Street? How would some savant weirdo with no Ivy credentials and no prestige be able to have a finance career?


Early Stage VC Pre-MBA Internship Interview Questions

I have an interview this week for a Pre-MBA internship with an early stage VC fund. Are there any particular questions I should be prepared for? I'm planning on making sure I understand how and why they invest and researching the companies they've involved with as well as having some companies ready that I think would be good investments. Anything else I should expect to be asked?

Thanks!


Thoughts on risk

I was 12 and the hill looked enormous.  I'd done it in the past with success, so much success that I could almost taste the thrill.  The thrill of riding a bike down a steep hill on a rutty dirt path and then flying through the woods.  The sense of completion from doing something dangerous, and the sensation of my stomach in my throat.  I went first and my friends watched.  Everything started well until my front tire hit a root.  Suddenly I was going faster than my bike, except I forgot to let go of the handlebars.  My bike and I were flying through the air before we finally landed in a jumbled mess on the ground.  The landing left a mark, a scar that took years to fade away.  My friends rode down without issue, they enjoyed the thrill.  At 12 I didn't want to look like a wuss, so I got on my bike and slowly followed through the woods.


Don't Get Fired For An iPad

Who here has worked for a company that experienced a major data breach caused by hackers? I would imagine more than a few of you have seen the fallout from such an event. Interestingly, the underlying conditions that make a firm vulnerable tend to be rather simple: neglect and/or stupidity. Those of you at JPM may remember last summer when over 80 million records leaked out of the network, seemingly caused by the security team's failure to upgrade a server.

However, it's important to remember that JPM's network is absolutely massive. While it's unacceptable that their network team failed to upgrade in a timely manner, it's easy to attributable to a simple mistake. What is utterly insane, is the number of very smart people falling for phishing schemes.


So will the market correct itself this earnings season?

The S&P 500 fell below its 50-day moving average of 2,085.02 closing at 2081.18 and the Dow dipped below its 50-day moving average at 17826.30 when the markets closed on Friday. Although news of changed trading regulations in China (expanding the list of shares from 900 to 1,100 which permit short selling and greater intervention in the OTC markets) and increased uncertainty around Greece defaulting on its obligations to the IMF dominated the headlines the overall global economy seems plagued by the weak commodities market perhaps symptomatic of the underlying structural weakness.

Market correction has been a much debated topic and with as the strengthening dollar weakens earnings and higher likelihood of rate hike corrects valuations, the markets might be ready for the correction that analysts have been talking about for a while now. Energy companies will clearly dominate the season as lower energy prices have only been partially priced in. With construction of rigs slowing down ripple effects will be felt in different sectors such as housing and construction.

As FED seemed poised for a rate hike in September the IMF warns the global economy of ‘taper tantrums’ in form of spill overs in the emerging countries. This is of particular concern since relatively stronger demand prospects have been the saving grace as multinationals like Nestle and Unilever attributing large revenue shares (60% and 45% respectively) to emerging markets.


Stock & Bond Market Update (4/13-4/17)

Stock Market Analysis

Following a positive prior week, stocks had a “sinking spell” last week when the Dow declined 1.8%. This brings its year to date return to a miniscule 0.02%. The broader S&P 500 Index has done only slightly better gaining slightly less than 1.1%. There is some evidence smaller and mid cap sized companies are doing somewhat better, with year to date returns of 2.80% for the S&P 600 Small Cap Index and approximately 4.4% for the S&P 400 Mid Cap Index.


Webinar Rewind - Week in the life of a Macro Hedge Fund PM + Q&A

In case you missed our December 16th webinar entitled Week in the life of a Macro Hedge Fund PM, have no fear. The full recording of the webinar can be found below (free until Tuesday 10pm et when it goes into our video library). Do you want to a 1 on 1 mentoring session with Tim? Click below:

SIGN UP WITH TIM

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All rewinds will be on Monday / Wednesday / Friday.

And, as always, if you want to sign up to hear about upcoming webinars before they happen, sign up inside the post...