Wealth Management Overview

Financial services provided to wealthy clients, mainly individuals and their families.• More expansive than asset management• Large scope of careers• Large scope of securities researched, analyzed, and managed• Entrepreneurial

What is Wealth Management?

• Financial Advisor• Client Associate• Operations Associate

Types of Firms: • National Wirehouse:

o Examples: Merrill Lynch, Morgan Stanley, JP Morgan, Wells Fargo• Independents (RIAs)

o Example: LPL Financial, Acme Capital• Banks

o Examples: Citizen’s Bank, Sovereign Bank, Rockland Trust

Career Options

Investment management overview

Individuals, families

Wealth managers

Institutional investors

Internal managersInternal asset allocatorsPortfolio consultantsFund of funds

Mutual fundsHedge fundsIndex funds

Sell side research

Independent research

Market research

External legal counsel

Arrows indicate flow of capital

Hedge Funds Overview

Investment partnerships managing relatively small pools of capital, specialized in investment style and/or asset class. • (Relatively) unregulated

o Flexible in ability to invest, but restricted in whose money we can manage• Unique profit split and downside protection features:

o 2 / 20 economics – performance oriented, volatility agnostico Absolute performance, hurdles, high water marks

• Styles: specialized and concentratedo E.g. value, long/short, trading, special situations, global macro

• Small firms vs. big firmso Less silos - more independenceo Less politics/bureaucracy - more of your voiceo Less splitting of the pieo No less job security

What are hedge funds?

Career options

• Research analysto Reading: SEC filings, transcripts, product literature, newso Phone: Talking to management, competitors, customerso Traveling / meeting: Meeting management, site visits, shareholder meetings, conferenceso Modeling: Excel, valuation, projections

• CFO / COO • Trader• Legal counsel• Marketing Ancillary career options:• Sell-side research

o Craig-Hallum, B. Riley, Needham, Northland, Sidoti, all the major banks…• Independent research:

o E.g. Telsey, Zelman, Hedgeye• Market research:

o E.g. Gartner, Forrester, IDC

• You will likely get a job through a reference • Some hedge funds are continuously interviewing• Resume – don’t fluff it up, keep it short, have someone in industry look it over

o Don’t use pre-canned cover letters/thank you letters. Email is fine. Keep it short.o Attach a stock idea. One page. Bullet points.

• Know your accounting and how to read financial statements.• Interviewers will look for the following in a entry-level analyst:

o Integrityo Intellectual Curiosityo Loyaltyo Accounting skills and familiarity with financial statementso If they can picture working with you everydayo Interest/passion for investingo Clear and concise spoken communicationo Style fito Why you picked that firm

Job hunting / interviewing at hedge funds:

Mutual Fund Overview

Generally speaking, a mutual fund is a type of investment that invests in securities (typically stocks or bonds) led by a portfolio manager.

Two Types:1. Active: Actively managing with the goal of beating their benchmark. Example:

Fidelity Investments– Passive: Index funds that match a particular index. Example: Vanguard

What are Mutual Funds?

• Investment Associate• Junior Analyst• Senior Analyst• Portfolio Manager• Operations Associate• Information Technology• Internal/External Wholesaler: Marketing/sales

Examples of Companies: Fidelity, Vanguard, Capital Research & Management (American Funds), JP Morgan, Blackrock, PIMCO, Franklin Templeton, Federated, Goldman Sachs, Eaton Vance, Putnam

Career Options