Rotten Apples or Apple of my Eye?

Disclaimer: I'm short apple from 650. I'm also a bond guy normally, so, i'm sure someone will tear me apart about why i'm wrong here haha. Anyways I tried to explain my rationale being short and how I look at things when trading them. Somewhat. I also wrote this before a very good GDP print haha.


Too Big To Invest? The Downside to Mega Fund PE

Earlier this month, New York Times' DealBook ran a really interesting story on the implications of being a massive, global, and public private equity fund. I highly recommend anyone interested in PE, and particularly anyone interested in megafund PE, gives it a read.

These firms, which include Apollo, KKR, and the Blackstone Group, are sitting on an enormous amount of dry powder that they need to put to use in the next twelve months. To be more specific, they are sitting on $200 billion of dry powder with only one year to invest it.

This presents a number of problems to the funds and highlights some of the less glamorous aspects of private equity.


Is 24 too old to join as an IBD analyst?

What's the average age for an analyst on the floor? Is 24 too old? Especially for an Asian girl (that already puts you in the alien bracket. gaah!)

What do you guys think?


8 Non-Business Books For Business Success

Moderator Note (Andy): This is a guest post by Patrick Del Rosario, a business and financial blogger (full bio below)

Here's my recommendation for 8 great books that aren't classified specifically as "business books" and offer up much better advice than some the standard fare you will find in the genre.

Would love to hear your opinions on these, and any other books you might not necessarily find in the business section but offer sound advice for business, finance, entrepreneurship, career guidance, etc

1. The Art of War by Sun Tzu.
The granddaddy of all non-business business books, Sun Tzu’s explanation of how to engage in warfare in ancient China has had its principles applied to modern business again and again.


Halloween Costume Ideas

Look, I know you guys are all prepared to go dressed at Patrick Bateman, but I'm sure some of you guys out there have some creative costume ideas for this weekend. No Soros or Blankfein suggestions either please. Let's hear it monkeys, what are you guys going as this weekend?


UG Recruiting Part I: How a resume becomes an interview

Mod (Andy) note: elected by you - the monkeys of WSO, this is the 2011 Finance-forum post of the year (from Jan 28, 2011). I'm reposting it here on the homepage for any monkeys who have yet to see it. Thanks Marcus_Halberstram for a great post!

Since it is recruiting season, Im posting a multi-part series on how the whole process works to help the prospective monkeys better navigate the process, hopefully with a higher degree of success.

Lets start with the first time a bank sees resumes.


Win a free WSO tshirt !

Just for fun..... guess how many unique* visitors visited the site** today (Oct 25). Closest to wins (guessing over is acceptable). Winner announced tomorrow afternoon. Amazing WSO logo t-shirt arriving to you, the lucky winner, within ~2 weeks.

Legalese: WSO staff, actual monkeys, and those with our analytics access cannot participate. One entry per member.

*unique = one person, ie how many unique individuals visited the site today.


Why do investment bankers need to work long hours?

Moderator Note (Andy): Inspired by DonVon's post earlier this week ("WSO has ruined my concept of regular hours!") I came across this q&a from Quora's finance section where a user asked "Why do investment bankers need to work long hours?"

OP's question continued:

Quote:
What prevents banks from hiring, say 3 bankers instead of 2 and reducing the size of bonus? Can't some of the modeling work be outsourced?

This quality/in-depth answer by user Henry Wong received a lot of votes:


I Just Wasted My Vote

I'm taking the next month off and I won't be around when Obama gets reelected, so I thought I'd let you guys know that I was a good citizen and mailed in my absentee ballot earlier this week.

I'd initially intended to abstain this year, but the debates really turned me around. For the record, I think abstention is a perfectly legitimate vote in and of itself, and is really the only way for the American people to signal to the rest of the world that we have no faith in our government. Be that as it may, I've only ever abstained once (2004) since reaching legal voting age. On top of that, I firmly believe that anyone who ever voted for George W. Bush (as I did in 2000) should have their voting privileges revoked for life, so any voting I do from now on is pretty much gravy.

So what was it that got me off the schneid and forced me to download a ballot and mail it in? I think it was the case laid out by both candidates for their respective viewpoints, actually. Watching the debates drove home one thing for me:

I had to vote this time around for the sake of my own conscience.


Developing short ideas

I'll admit I know very little about shorting. Equity research is not known for its abundance of sell ratings. But, as I contemplate a move to the buyside, I am trying to learn.

It seems to me that successful shorts target companies with at least one of the following:

(1) Blatant overvaluation (e.g. Facebook)

(2) Failing business models (Best Buy, Newspapers)

(3) Companies with incompetent management, fraud, misleading accounting, etc. (Enron, Allied Capital)


Best way to quit AND get my bonus?

Looking for some opinions on my situation.

I am currently in asset management but recently accepted an offer from another firm to go into investment banking. My bonus at my current firm will be paid out in December and I don't start my new job until January, so common sense says not to say anything about leaving until my bonus is sitting in my checking account.

However, I work in a very small team and have a great relationship with my MD. If I leave without much warning they will be screwed big time, so I feel like I should give them a heads up that I will be leaving at the end of the year to give them more time to plan for it. My MD doesn't strike me as the type that will feel it is his duty or obligation to tell the higher ups I am leaving, but who really knows?


Office Politics: An Introduction to the Kitchen

It would be of the utmost foolishness to deny the apparent and completely unjustifiable surge of women, or as they have been commonly known to society, “bare-foot-kitchen-workers” in the world of finance. It seems as though they have migrated from the kitchen to the shiny offices and they are here to stay; no matter how many times the “superior sex” screams at them to go back to the kitchen, they just will not listen.

For the majority of men, god’s gifts to humanity, dealing with women in the work place can be one of two things; it is either as easy as ABC or as intricate and complicated as figuring out the spiral, which is of course dependent on subject woman’s state of being and many variables including but not limited to: Menstrual cycle, latest issue of Cosmo, and insecurity flares induced by jealousy, boys, and body image issues.