Multi-manager hedge fund perks via brokers?
I heard from an acquaintance working at a P72/Citadel/MLP that he gets pretty insane perks from his brokers - e.g. he can get a table at any restaurant/bar in Manhattan, great seats at sporting events, etc., all by calling up his broker at MS/JP/GS - does this stuff actually happen at the multi-managers? I guess it makes sense given they are brokers' biggest clients, but still seems pretty crazy.
Can someone shed some light on what these perks are like (examples of what people have asked for, how this ultimately gets paid for, whether there is a limit, wild stories, etc.)? Thanks and looking forward to seeing the responses!
Sure it happens...depends on the product majorly and how you feel about asking people to buy stuff for you... I found that those perks lost their luster after the first few years unless you are genuinely friends with that Broker.
Yes you can get those perks, but nothing is truly free. They'll get their pound of flesh from you one way or another, and if not you'll be turned off. Stuff like that is tracked internally on the brokers desk.
So let's say I was working at Citadel and I asked my MS broker to get me courtside tickets to a Nets game - MS would track that I asked for this, and that would ultimately get billed to Citadel?
No, they won't bill you down the line but there is an expectation for trading...its soft dollars
Let’s be clear, you’re not getting court side seats anywhere. You’ll (maybe) get taken to cheesy box seats with decent catering right next to the E&Y box.
Generally speaking, if you can’t afford it yourself (ie randomly buy courtside/ringside tickets), you’re probably not important enough for a vendor to host for said event.
If you can afford it, the last thing you want to do is be sitting next to some fuckin equity sales male bimbo at a John Legend concert.
Broker will take a bunch of junior monkeys out to a nice dinner. They’ll take a PM or sector head out to great seats at the US Open. They take a founder CIO to an the F1 in Austin or to some event at Art Basel. They’re not however taking some shit eating 24 year old analyst ringside for a Mayweather fight or on a pit walk at an F1 race. You’re not nearly valuable enough.
Many brokerages are required to spend a percentage of revenue on perks, outings, etc as part of marketing spend. It all comes with a catch though with the expectation for trades/commissions. The street talks and if you get marked as someone who takes advantage of this stuff, goodbye perks and good looks at markets.
Nothing in life is free. They’ll hook you up with tix and dinners but you’re expected to send trades their way. Firms usually use a broker vote to allocate trades (and commissions).
Also the games and dinners are with sales guys who are fun but it’s not the same as going with your friends.
It’s a much better use of your commission dollars to get management access, bespoke work, or be the first call after an analyst talks to mgmt.
Tickets are cool but I’ll take better performance (and larger bonus)
Exactly. From the brokers perspective, people usually don’t want to spend time with them. If there’s someone chomping at the bit to take some freebie perk off their hands, it’s probably someone with low status (organizationally) that isn’t worth taking out anyway. In which case, it’s a waste of those finite resources.
Exactly right. It’s fun once in a while but don’t abuse it and try to go with people you like
Have done many of these. Would include golf perks in that category (where broker takes you to play a really nice course). As this poster comments, it's not as fun as being with your friends. It's work. Business golf is just that, business. At the point where I choose not to attend these events unless it's massively beneficial as I'd rather just play golf or go to a game or have a nice dinner with my friends, no strings attached.
But you should experience them yourself and learn to play the game. Just remember you're spouse or significant other is going to role their eyes when you say, "I'll be home late because I'm going to the Knicks game with X. It's work thing. Blah blah blah." S/he won't understand, but it really is work. Same for those conferences you'll get to attend. Wined and dined for two or three nights sounds fun. Lots of small talk. if you like that that's great. Not my thing. I'd rather be at my kid's baseball game.
Has anyone ever gone on a cool trip?
If you can find a broker who you can stand and is fun it truly is great cause you enjoy hanging with them and at the same time send them flow cause you want them to do well and they want you to do well since that leads to more size.
That all said once you get older, every broker is annoying and you know the whole jig and dont care. You only talk to brokers cause they get you good #s and show you good stuff otherwise I am fine do not need a pretend convo like we friends about the NBA every morning.
Yes been on trips to football games, nba games, seen some players break records. Also know people who been to F1/Derby/USOpen etc…
Are we talking about sales traders?
I've had one broker take me to a world series game and another to an NBA finals game in the past ten years. Now I just need one to take me to a super bowl and I'm set. Not counting on it though, I think I'm on my own there.
IDGAF about hockey, otherwise pretty sure that's doable.
As a current Salesperson, at an American investment bank on a team covering a lot of the large macro universe I can say with certainty that the entertainment perks and benefits are not nearly what they used to be. The scrutiny on budgets and approval processes are tighter than ever from management. Sure, you have unlimited capacity to take squad of junior guys with a a couple hundred dollars a head of budget every night of the week. However, the box seats/F1 races/golf tournaments events are few and far between these days sadly…
Any cool places/events you recommend that are in budget?
i call up brokers for a nice lunch/dinner every once in a while when i just want to be out of the office and take a breather for whatever reason (good and bad). definitely had dinners of >$1000 a head before. it's fun but i wouldn't do it more than once every few months - it's still work at the end of the day
When you're young its definitely cool...however, the appeal wears off quickly once you realize your spending your free time essentially flirting with dudes and talking about your job.
echoing pretty much every other comment here. Nets game and nice dinners are cool, but lose their lister if you're not friends with the broker outside of work. Every broker is always trying to figure out what your performance is and gossiping so you have to be aware that they aren't really your friends.
https://www.wsj.com/articles/SB112164966153587999
https://www.wsj.com/articles/BL-LB-5418
Nice try SEC.
Work at a BB. My group takes clients to the US Open every summer. Whenever clients cancel (and per the above it happens a lot), excess tickets get chucked the analysts' way.
Sat courtside at Arthur Ashe last year on a sunny August day while sipping free booze from the lounge. Epic 5-set game ending in a massive upset. GOAT banking moment.
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