Does investment banker knows how to invest?

Does investment banker in bulge bracket companies know how to personally invest well and outperform the market? Do they know which stock or commodities will rise soon or expect next profitable real estate market?

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Investment bankers are more like real estate agents, they don't do any investing. They provide the due diligence on a client transaction and create value to the client to push the deal through. They are trying to get the best deal for their client.

With that being said, most investment bankers are not experts in investing, but certainly have significantly more market knowledge that the average person.

Technically in LevFin and Capital Markets group do "invest" by providing capital for loans or providing capital in a syndicate.

Fell free to correct any mistakes. Like my title says, I'm an intern.

 

Good comment but I'm not sure about the Capital Markets part. ECM & DCM advise the clients on Equity/Debt rising transactions (ie IPOing, issuing bonds...) but they don't really invest. In fact, working at those groups involves less modelling experience (and thus less of anything related to financial analysis), as ECM/DCM transactions are more process driven.

 

investment bankers do not invest. They perform more transaction-based services like M&A, capital markets, LevFin, restructuring, etc. This is stuff you can google. Agree with the above that I-bankers usually have much better knowledge about markets and investing than the average layperson just given the intertwined subject matter, but it is not their specialty. Asset managers at mutual funds and hedge funds are what you are thinking of; creating pools of money in funds to invest in public equities.

 

Are you retarded?

Are you?  I literally design funds for a living.  If I could promise outperformance I'd be on the French Riviera right now.  We slapped ten charterholders and 4 finance PhD's in a room, and the best we could come up with was "maybe 3% a year, but 17% tracking error"

The only difference between Asset Management and Investment Research is assets. I generally see somebody I know on TV on Bloomberg/CNBC etc. once or twice a week. This sounds cool, until I remind myself that I see somebody I know on ESPN five days a week.
 

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