Wealth Management Overview

1
Wealth Management Overview
2
What is Wealth Management?

• 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

3
Career Options

• Financial Advisor
• Client Associate
• Operations Associate
• Types of Firms
• National Wirehouse
• Examples Merrill Lynch, Morgan Stanley, JP
  Morgan, Wells Fargo
• Independents (RIAs)
• Example LPL Financial, Acme Capital
• Banks
• Examples Citizens Bank, Sovereign Bank,
  Rockland Trust

4
Investment management overview
Individuals, families
Institutional investors
Internal managers Internal asset
allocators Portfolio consultants Fund of funds
Wealth managers
Mutual funds Hedge funds Index funds
Sell side research
Independent research
External legal counsel
Market research
Arrows indicate flow of capital
5
Hedge Funds Overview
6
What are hedge funds?

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

7
Career options

• Research analyst
• 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
• Craig-Hallum, B. Riley, Needham, Northland,
  Sidoti, all the major banks
• Independent research
• E.g. Telsey, Zelman, Hedgeye
• Market research
• E.g. Gartner, Forrester, IDC

8
Job hunting / interviewing at hedge funds

• You will likely get a job through a reference
• Some hedge funds are continuously interviewing
• Resume dont fluff it up, keep it short, have
  someone in industry look it over
• Dont use pre-canned cover letters/thank you
  letters. Email is fine. Keep it short.
• 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
• Integrity
• Intellectual Curiosity
• Loyalty
• Accounting skills and familiarity with financial
  statements
• If they can picture working with you everyday
• Interest/passion for investing
• Clear and concise spoken communication
• Style fit
• Why you picked that firm

9
Mutual Fund Overview
10
What are Mutual Funds?

• 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
• Active Actively managing with the goal of
  beating their benchmark. Example Fidelity
  Investments
• Passive Index funds that match a particular
  index. Example Vanguard

11
Career Options

• 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