December has proven to be the biggest month for stock markets all over the world.
Stephen Eckett, author of The UK Stock Market Almanac 2014, has examined a number of theories that claim to explain this anomaly.
“I don’t go along with this theory, but one theory is that fund managers throughout the year invest in all sorts of stocks,” Eckett told StreetID. “When they share reports at the end of the year, these reports will carry a record of what their portfolios are holding.”
Thus, hedge fund managers might decide to tidy up their portfolios and throw out any embarrassing investments that did not pan out. They will then switch into “nice, sensible stocks,” the theory claims.
Last week StreetID reported on the thousands of new jobs that are available across the biggest local and international banks.
From Chase and Citigroup to Capital One and Bank of America, these financial stalwarts are bringing in tons of new employees.
But they are not the only banks that are looking to hire. As it turns out, mid-sized banks like SunTrust are also searching for fresh talent.
SunTrust is a particularly interesting company because it offers a number of high-end positions outside of the typical climate (New York, Chicago, etc.). The company has more than a dozen listings for accounting and finance jobs; more than a dozen HR, legal and training jobs; and more than two dozen jobs in audit, compliance and risk. The vast majority of these positions are for the company’s headquarters in Atlanta, Georgia.
Startups and boutique investment firms may offer the best jobs for those who are lucky enough to attain them, but the biggest banks may provide work for everyone else.
Citigroup, for example, is looking to fill more than 4,000 positions all over North America (2,388 jobs), Latin America (157 jobs), Asia Pacific (995 jobs), Europe, the Middle East, and Africa (543 jobs collectively for the last three regions).
In North America alone Citigroup is seeking more than 100 analysts, more than 100 compliance and control specialists and nearly 200 individuals in operations. The company is also looking for a number of marketing specialists, investment bankers, investment managers (including a senior hedge fund of fund portfolio manager), and investor relations specialists. New employees are also being added to the firm’s legal counsel.
Now that hedge funds can finally advertise, they have a lot to think about.
At the same time, the JOBS Act rules could make it easier for additional funds to be formed.
Before aspiring managers get started, there are a number of key things that they need to consider.
Ron Geffner, a partner at New York-based law firm Sadis & Goldberg, provided StreetID with five essential tips for starting a hedge fund.
“First and foremost, develop a real budget,” said Geffner, whose law firm represents more than 600 hedge fund managers worldwide.
Now that hedge funds are allowed to market their businesses, many are wondering when the first hedge fund commercial will appear on television.
April Rudin, a financial services marketing strategist and digital media expert, believes that hedge fund marketing is more than a 30-second spot on CNBC.
When talking to fund managers during a recent webinar, she worked hard to fill them in on everything they needed to know.
“What we did was really explain marketing to hedge fund managers, because marketing isn’t advertising,” Rudin told StreetID.
Job seekers might be tempted to accept a counter-offer from a current employer, especially if it means a significant pay boost. But it could be the kiss of death for those who wish to have an enjoyable and meaningful career.
“When you resign, you just have to go in and give the customary two-week notice and just be professional,” Skip Freeman, author of “Headhunter” Hiring Secrets: The Rules of the Hiring Game Have Changed . . . Forever!, told StreetID. “Never lie, never complain about anything. The reality is this: sometimes no matter what, the mere fact that you resigned burns that bridge. Sometimes, frankly, there’s nothing you can do about it.”
But if that bridge isn’t burnt and a counter-offer is made, job seekers should still probably walk away.
For more than a year, Wall Street watchers have been hyping the JOBS (Jumpstart Our Business Startups) Act as a significant piece of legislation.
Many experts said that it could lead to new firms in the financial sector. Others anticipated a transformation within the hedge fund industry. Some believed that it would foster the creation of new jobs.
Ron Geffner, a partner at New York-based law firm Sadis & Goldberg, feels that it may be too soon to make any predictions.
“It’s premature to determine the usefulness of the legislation,” Geffner , whose law firm represents more than 600 hedge fund managers worldwide, told StreetID.
While many JOBS Act supporters expect small- and medium-sized firms to take advantage of the option to advertise, Geffner thinks that the law may cater to “outlier” firms.
In January, The Wall Street Journal wrote about the rise of the so-called “phantom job listing.”
These are jobs that an employer posts (typically on its own website) after it has identified a new hire. While the new hire may not be set in stone, he or she has a much greater chance of getting the job than the dozens of new applicants that have started to apply.
Instead of getting frustrated by this practice (which is legal), career coach David Couper recommends that job seekers start the application process before a position is formally announced.
“That’s most important,” he said.
Second, it’s important that they have the appropriate level of experience and competency to get the job done.
Stuller also looks for someone who is hard-working — a person who “understands what it means to apply significant effort toward building something new.”
“For each functional job, it drills down to the specifics of the job, of course,” he added.
When asked if the hiring mission would continue in 2014, Stuller replied, “Without question.”
StreetID recently spoke to three financial companies that are hiring or plan to in the near future.
CFS Investment Advisory Services
Totowa, New Jersey-based CFS Investment Advisory Services is planning to add another person to its 401k department.
Later in the year, the firm may also add an internal consultant to service and sell more of the 401k leads that are coming in.
“We’re constantly getting leads,” Gregory Makowski, co-founder and managing member of CFS Investment Advisory Services, told StreetID. “We’re not entirely sure what position [we'll fill]. We’re still trying to identify that. But we need to bring someone in.”