Morning Coffee: Goldman Sachs analyst saved miserable $4.5k a year. Top hedge fund doubling London staff
If you get an analyst job at Goldman Sachs you'll be able to save a lot of money, maybe pay down the debts generated by your education, save for a deposit for a house. Right? Err, not necessarily.
When Goldman Sachs surveyed its interns last summer it found their number one aspiration was saving money. People who want to work for Goldman Sachs are thrifty types who want nothing more than to own their places. However, the experience of one former Goldman analysts suggests the savings rate among young people at the firm may not be all that.
Scott Belsky spent four years working at Goldman Sachs. During that time, he saved...$18k. What went wrong?
Firstly, timing. Belsky started at Goldman in 2002, after the tech boom turned to bust and September 11th happened. Banks still paid good money in 2002, but far less than in previous years. Even allowing for inflation, Belsky didn't save much: in current prices that $4.5k of annual savings would be equivalent to around $5.5k.
Secondly: positioning. Belsky lived in New York City, which is expensive, and he didn't go for wage maximization in the front office. He stuck to what he describes as, "a very mundane job on the trading floor," followed by two years working at Pine Street - Goldman's training facility.
Thirdly: enthusiasm. Belsky wasn't especially enamored of his job. "A year and a half in, I realized this was not where I was going to spend my career," he told Business Insider. Even so, leaving was hard. Goldman Sachs was like a, "comfortable womb," Belsky recalls.
Nonetheless, leave he did and after taking an MBA at Harvard Business School, Belsky invested his $18k in a company which he subsequently sold to Adobe for $150m. Saving half your compensation at Goldman Sachs is so overrated.
Separately, Chris Rokos is hiring. The ex-Brevan Howard, ex-Goldman Sachs star trader who started a fund in London two years ago, wants some new macro fund managers following a reported $2bn increase in assets under management. Rokos Capital Management currently employs 22 people according to the FCA Register. Only five of these are portfolio managers. Rokos reportedly wants to hire five more in a "gradual expansion." The last person to join was Marcus Browning from Bluecrest in December.
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