Wealth Management Overview What is Wealth Management Financial

Wealth Management Overview

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

Career Options a. Financial Advisor b. Client Associate c. Operations Associate Types of Firms: • National Wirehouse: o Examples: Merrill Lynch, Morgan Stanley, JP Morgan, Wells Fargo o Example: LPL Financial, Acme Capital o Examples: Citizen’s Bank, Sovereign Bank, Rockland Trust • Independents (RIAs) • Banks

Investment management overview Individuals, families Wealth managers Sell side research Independent research Market research Arrows indicate flow of capital Institutional investors Internal managers Internal asset allocators Portfolio consultants Fund of funds Mutual funds Hedge funds Index funds External legal counsel

Hedge Funds Overview

What are hedge funds? Investment partnerships managing relatively small pools of capital, specialized in investment style and/or asset class. a. (Relatively) unregulated • • • o Flexible in ability to invest, but restricted in whose money we can manage o o 2 / 20 economics – performance oriented, volatility agnostic Absolute performance, hurdles, high water marks o E. g. value, long/short, trading, special situations, global macro o o Less silos - more independence Less politics/bureaucracy - more of your voice Less splitting of the pie No less job security Unique profit split and downside protection features: Styles: specialized and concentrated Small firms vs. big firms

Career options a. Research analyst a. b. c. d. e. f. g. Reading: SEC filings, transcripts, product literature, news Phone: Talking to management, competitors, customers Traveling / meeting: Meeting management, site visits, shareholder meetings, conferences Modeling: Excel, valuation, projections CFO / COO Trader Legal counsel Marketing Ancillary career options: Sell-side research a. Craig-Hallum, B. Riley, Needham, Northland, Sidoti, all the major banks… h. Independent research: a. i. E. g. Telsey, Zelman, Hedgeye Market research: a. E. g. Gartner, Forrester, IDC

Job hunting / interviewing at hedge funds: a. You will likely get a job through a reference b. Some hedge funds are continuously interviewing c. Resume – don’t fluff it up, keep it short, have someone in industry look it over a. Don’t use pre-canned cover letters/thank you letters. Email is fine. Keep it short. b. Attach a stock idea. One page. Bullet points. d. Know your accounting and how to read financial statements. e. Interviewers will look for the following in a entry-level analyst: a. Integrity b. Intellectual Curiosity c. Loyalty d. Accounting skills and familiarity with financial statements e. If they can picture working with you everyday f. Interest/passion for investing g. Clear and concise spoken communication h. Style fit i. Why you picked that firm

Mutual Fund Overview

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

Career Options a. Investment Associate b. Junior Analyst c. Senior Analyst d. Portfolio Manager e. Operations Associate f. Information Technology g. 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