6 Free Financial Modeling Lessons...and More.

Enter your e-mail below to get our new Free Modeling Tutorials ($200+ Value).

next >

Q&A Interview with SirTradesaLot, Part 1/2
 

SirTradesaLot's picture
 
Points)
 on 9/14/12 at 11:30pm
sirtrades interview.jpeg

Andy note: BIG thanks to SirTradesaLot for doing a Q&A with me and offering up his advice for the WSO community - "One of my greatest joys is helping young, ambitious people." He has worked in the finance industry for almost 15 years in a variety of roles at global investment banks and asset managers. A few years ago, he left a senior management position in the equities division of a large asset manager to start a hedge fund/asset management firm with former colleagues.

My background
When I was in college, I had no idea I would end up in the financial field. I grew up in the middle of nowhere and one of my parents was a high school graduate, the other was a high school dropout. To say that I had no idea what finance was about would have been an enormous understatement. Coming out of college, I took a job in finance and was lucky that it was something that I truly enjoyed and I wanted to learn as much as I could about it. To be fair, if I had ended up in another field, maybe I would have enjoyed it just as much anyway. My first post-college job was not in high finance, but nonetheless it piqued my interest in the field.

So, I took my Series 7 and probably couldn't have told you the difference between a stock and a bond at the time. There is good news and bad news for the college kids today. You have significantly better access to information about Wall Street because of resources like WSO and the internet in general. The bad news is that people have higher expectations of you than people who started when I did. The kids today are leaps and bounds more prepared than when I left college in the 1990's.

During my career on Wall Street I was heavily involved in recruiting for a global investment bank for the asset management division, which was one of my favorite parts of the job. I wanted to share some of my thoughts for some of you looking to break into the field and for those looking to move up who are relatively new to the field.

First of all, let me start by saying that I definitely don't have all the answers and the path I have taken has been pretty unconventional in that it was not linear all the time and was not the well worn path. I never really considered exit opportunities when looking at my next move because I always felt like I could create my own. That being said, here are some of my (random) thoughts for those looking to break in to this business. I'm going to attempt to keep my douche level to a minimum, but there's only so much I can do...I've been in the game since some of you were in diapers.

At one point during my career, I was heavily involved in recruiting for a global investment bank for the asset management division, which was one of my favorite parts of the job. I wanted to share some of my thoughts for some of you looking to break into the field and for those looking to move up who are relatively new to the field.

Importance of your first job after college:
If you don't find the exact job you are looking for, life can still turn out just fine. Even if you end up with the exact job you desired, it will likely not be what you imagined. No matter which job you end up with, I would try to take on as many side projects as possible to maximize your knowledge base. If you decide you want to specialize, you can always do so later. Usually, you don't have to choose a highly specialized path within your first year or two out of college. My angle was to maintain my generalist status for as long as possible and I think I am still in that position.

Meritocracy is not dead yet:
Wall Street is a more meritocratic place than most. If you are a young person and you have good ideas, people will often listen to them, if you are in the right role. Certain jobs on Wall Street take a more factory like approach to junior roles, of course, and those are the ones that I would avoid like the plague. If it all possible, try to determine if the role you are applying for respects the ideas of junior people or expects them to solely be a cog in the machine. Don't get me wrong, you will have to eat shit sandwiches no matter where you start, but it will taste better if your ideas are respected.

Relatively early in my career, I was working on a side project and uncovered some interesting insights about our portfolios. About the time I was working on this, we got a new head of our group who was very senior and didn't care if you were 25 or 65 as long as you had good ideas and worked hard. I was able to share some of my research with the new boss, which the boss loved. I was able to build a strong rapport with this person and had earned the respect of the boss through creativity and work ethic. Shortly thereafter, people who were significantly more senior than me (at the time) started getting blown out because the new boss did not think highly of them, which allowed me to take on a significantly larger scope of responsibilities.

The point of this rambling story is to let you know that if you have the opportunity to prove yourself, you need to seize the moment, regardless of your age. Also, if you can find a mentor/boss that can move your career forward, you should take advantage of that. I stuck with this boss for a number of years before the boss retired. This person continues to be very helpful in my current business as well. By the way, for those of you getting ready to say that I should change my name to SirKissesAssaLot, I can tell you that a lot of people did kiss this person's ass and this person saw right through it and had no respect for sycophants.

Intellectual curiosity/passion:
Let's assume you start off with two people who have equal capabilities: person A has an actual interest in the investment business and person B is just collecting a paycheck. When you roll the clock forward 5 years, the differences in their competency level will be enormous because the person with passion will devote a lot of their time to learning and experimenting with new aspects of the markets. The compounding of this effect will overwhelm the fact that each person started with the same capability.

The point is this: if you don't have passion for this business, your peers will blow you away and you will likely be unemployed soon.

Building an investment case:
When you are developing investment strategies or a case for a particular investment, it is important to look for evidence of why it will NOT work. The bias in human nature is to come up with what seems like a good idea and look for evidence to support your thesis. You must try to counteract that tendency. Unfortunately, you can't get investment decisions down to a science and you will be wrong sometimes, but if you don't look for reasons you could be wrong, you will be open to getting blindsided.

You need to be creative if you want to succeed. Analyzing the same criteria as everyone else dooms you to mediocrity, in my opinion. There are just way too many smart people to try to out-analyze them head to head and get significantly better results. You need to see things from different perspectives. I can't tell you how to do this, by definition that would not be creative.

keep an eye out next week where we will post part 2

Turbo leverage for capital explosion -- BD Capital My WSO Blog
Tags:

Comments

UFOinsider's picture

Cool, thanks!!!

O
(Human, 10,347
 
Points)
 on 9/12/12 at 10:56am

Cool, thanks!!!

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

GS's picture

Thanks for doing this!

ST
 
Points)
 on 9/12/12 at 10:57am

Thanks for doing this!

Soapy.Detergent's picture

SirTradesaLot: When you are

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 11:12am
SirTradesaLot:

When you are developing investment strategies or a case for a particular investment, it is important to look for evidence of why it will NOT work.

That's what private equity professionals do all day.

ladubs111's picture

Out of curiosity what did you

IA
 
Points)
 on 9/12/12 at 11:19am

Out of curiosity what did you do anyways? Were you the execution guy as your name indicates or doing more fund managing now.

SirTradesaLot's picture

ladubs111: Out of curiosity

 
Points)
 on 9/12/12 at 11:42am
ladubs111:

Out of curiosity what did you do anyways? Were you the execution guy as your name indicates or doing more fund managing now.

Haha, no, my name is misleading. Trading is one of the few things I don't do at my current firm and I would say we trade relatively little. I'm more involved with developing our strategies (which I love) and meeting with our clients (which I don't), as well the other things needed to run the business.

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

CaR's picture

+1, good stuff man

O
(Gorilla, 643
 
Points)
 on 9/12/12 at 11:47am

+1, good stuff man

I tell you, we are here on Earth to fart around, and don't let anybody tell you different.
Kurt Vonnegut

Cruncharoo's picture

Good poster, good interview.

CO
(Gorilla, 685
 
Points)
 on 9/12/12 at 12:07pm

Good poster, good interview.

This to all my hatin' folks seeing me getting guac right now..

RichardPennybags's picture

Very nice, thanks!

ST
 
Points)
 on 9/12/12 at 12:26pm

Very nice, thanks!

"Every man should lose a battle in his youth, so he does not lose a war when he is old"

BullMkt's picture

Awesome post, thanks!

(Monkey, 37
 
Points)
 on 9/12/12 at 12:47pm

Awesome post, thanks!

The hills are alive with the sound of horsepower! - Jeremy Clarkson

NYU's picture

SirTradesaLot: Haha, no, my

PE
(Baboon, 160
 
Points)
 on 9/12/12 at 12:56pm
SirTradesaLot:

Haha, no, my name is misleading. Trading is one of the few things I don't do at my current firm and I would say we trade relatively little. I'm more involved with developing our strategies (which I love) and meeting with our clients (which I don't), as well the other things needed to run the business.

What's the part about meeting clients you don't like? Is it that they require too much information on your ideas before they will commit?

WallStreetOasis.com's picture

Thanks!

EN
(Human, 12,073
 
Points)
 on 9/12/12 at 1:00pm

Thanks!

WSO Conference 2013

Private Certified User Chat

Financier4Hire's picture

So, I took my Series 7 and

PE
(King Kong, 1,110
 
Points)
 on 9/12/12 at 1:01pm

So, I took my Series 7 and probably couldn't have told you the difference between a stock and a bond at the time

Anybody with half a brain can pass Series 7 (Gen. Securities lic.) and 63. As long as you've got a at least C average in College, it is a breeze.

Nowadays, a lot of employers want a CFA candidate/if not a Charterholder. CFA level I and level II are a piece of cake, where it gets more involved with portfolio management theory is Level III

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Financier4Hire's picture

Certain jobs on Wall Street

PE
(King Kong, 1,110
 
Points)
 on 9/12/12 at 1:09pm

Certain jobs on Wall Street take a more factory like approach to junior roles, of course, and those are the ones that I would avoid like the plague. If it all possible, try to determine if the role you are applying for respects the ideas of junior people or expects them to solely be a cog in the machine

Sorry folks. You cannot avoid that if you could. "Analyst" at MS or GS actually means being a secretary, an appointment setter, filling/CRM and that kind of stuff. You don't get to see a model until your 2nd year if you are lucky. You are the cog in the machine. You are the bottom-feeder.

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Financier4Hire's picture

Unfortunately, you can't get

PE
(King Kong, 1,110
 
Points)
 on 9/12/12 at 1:12pm

Unfortunately, you can't get investment decisions down to a science and you will be wrong sometimes, but if you don't look for reasons you could be wrong, you will be open to getting blindsided.

I've always said investment is more of an art than a science, especially in what I do which is event-driven, distressed and special situations.

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Ganderlord's picture

This is great, thanks! How

(Chimp, 11
 
Points)
 on 9/12/12 at 1:13pm

This is great, thanks! How did your previous experience in IB and asset management firms prepare you to for starting your own firm?

zsme

SirTradesaLot's picture

NYU: SirTradesaLot: Haha,

 
Points)
 on 9/12/12 at 1:22pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

SirTradesaLot's picture

Financier4Hire: Certain

 
Points)
 on 9/12/12 at 1:43pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Soapy.Detergent's picture

SirTradesaLot: I think the

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 1:52pm
BlackHat's picture

Soapy.Detergent: SirTradesa

HF
 
Points)
 on 9/12/12 at 1:54pm

I hate victims who respect their executioners

Follow BH & Co. on Twitter: @DumbLuckCapital
twitter.com/DumbLuckCapital

Soapy.Detergent's picture

BlackHat: Or a better

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 1:57pm
Vectors225's picture

Just out of curiosity, is it

CF
(Orangutan, 372
 
Points)
 on 9/12/12 at 2:15pm
Financier4Hire's picture

Soapy.Detergent: That's not

PE
(King Kong, 1,110
 
Points)
 on 9/12/12 at 2:32pm

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Asatar's picture

Vectors225: Just out of

O
(Neanderthal, 2,025
 
Points)
 on 9/12/12 at 2:32pm

See my other WSO blog posts>

UFOinsider's picture

Financier4Hire: So, I took

O
(Human, 10,347
 
Points)
 on 9/12/12 at 2:56pm

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

SirTradesaLot's picture

Ganderlord: This is great,

 
Points)
 on 9/12/12 at 2:57pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

SirTradesaLot's picture

Soapy.Detergent: SirTradesa

 
Points)
 on 9/12/12 at 3:15pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

SirTradesaLot's picture

UFOinsider: SirTradesAlot:

 
Points)
 on 9/12/12 at 3:22pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Soapy.Detergent's picture

SirTradesaLot: Soapy.Deterg

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 3:26pm
UFOinsider's picture

SirTradesaLot: UFOinsider:

O
(Human, 10,347
 
Points)
 on 9/12/12 at 3:30pm

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

GS's picture

BlackHat: And are there any

ST
 
Points)
 on 9/12/12 at 3:36pm
SirTradesaLot's picture

Soapy.Detergent: SirTradesa

 
Points)
 on 9/12/12 at 3:38pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

BlackHat's picture

Soapy.Detergent: But until we

HF
 
Points)
 on 9/12/12 at 3:38pm

I hate victims who respect their executioners

Follow BH & Co. on Twitter: @DumbLuckCapital
twitter.com/DumbLuckCapital

Soapy.Detergent's picture

SirTradesaLot: I will say

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 3:56pm
SirTradesaLot's picture

Soapy.Detergent: SirTradesa

 
Points)
 on 9/12/12 at 3:58pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

Soapy.Detergent's picture

SirTradesaLot: I would never

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 4:04pm
Vectors225's picture

Asatar: Vectors225: Just

CF
(Orangutan, 372
 
Points)
 on 9/12/12 at 4:20pm
SirTradesaLot's picture

UFOinsider: Thanks. Followup

 
Points)
 on 9/12/12 at 5:04pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

UFOinsider's picture

SirTradesaLot: UFOinsider:

O
(Human, 10,347
 
Points)
 on 9/12/12 at 5:21pm

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

Financier4Hire's picture

I will say that there are

PE
(King Kong, 1,110
 
Points)
 on 9/12/12 at 5:24pm

"The future isn't what it used to be "-Yogi Berra

"Perhaps you've failed to take into account my hidden assets"-007


The coolest cat on WSO
My BLOG

Misspartiesalot's picture

Thanks for the interview, I'm

 
Points)
 on 9/12/12 at 5:40pm

--Money can't buy happiness. it can only buy orgasms.
--Who the hell says I want happiness? Orgasms all I need.

brandon st randy's picture

Financier4Hire: I will say

PE
(Gorilla, 703
 
Points)
 on 9/12/12 at 5:57pm

...well, he's no use to us if Detroit is his idea of a small town!

Soapy.Detergent's picture

brandon st randy: You are

IB
(Monkey, 63
 
Points)
 on 9/12/12 at 6:07pm
SirTradesaLot's picture

Financier4Hire: I will say

 
Points)
 on 9/12/12 at 6:14pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

UFOinsider's picture

SirTradesaLot: Financier4Hi

O
(Human, 10,347
 
Points)
 on 9/12/12 at 11:41pm

YOU JUST GOT TROLLED
http://www.troll.me/images/red-foreman322/dont-you...

huanleshalemei's picture

SirTradesaLot: Partially,

(Gorilla, 518
 
Points)
 on 9/12/12 at 8:29pm

The Auto Show

huanleshalemei's picture

Financier4Hire: Nowadays, a

(Gorilla, 518
 
Points)
 on 9/12/12 at 8:45pm

The Auto Show

SirTradesaLot's picture

huanleshalemei: SirTradesaL

 
Points)
 on 9/12/12 at 8:48pm

Turbo leverage for capital explosion -- BD Capital

My WSO Blog

huanleshalemei's picture

Er, right I don't think

(Gorilla, 518
 
Points)
 on 9/12/12 at 9:00pm

The Auto Show

TexasTim's picture

Risk should scream louder

(Baboon, 101
 
Points)
 on 9/13/12 at 12:07am

There is life and death. I'm going to bust my ass to make an impact 'til the latter comes.

duffmt6's picture

BlackHat: And are there any

IB
(Neanderthal, 2,325
 
Points)
 on 9/13/12 at 8:10am

"Social cohesion and puritanical morality place roughly on my list of concerns between whether I'll pick up jock itch at the gym this week (not likely, since I don't go the gym) and whether it'll rain in Christchurch, New Zealand next Tuesday."
-Eddie

6 Free Financial Modeling Lessons...Straight to Your Inbox.

Confirm your name and e-mail below to get our best tips

Monkey Stats
Account information
We respect your Name and E-mail privacy. By joining you accept our terms of service.