Investment Banks Destroyed - by Anton Kreil @Instutrade

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Investment Banks Destroyed - by Anton Kreil @Instutrade by Mind Map: Investment Banks Destroyed - by Anton Kreil @Instutrade

1. hedge funds

1.1. trader @ hedge funds

1.1.1. what they do protect client's capital make money in rising and falling markets managing porfolios traders are also known as portfolio managers (PMs) positive selection portfolio only trade their own money + investors money

1.2. structure

1.2.1. ustilise private investors (Clients) capital

1.2.2. important info typically hold hedged (balanced) and diverse long/short portfolios

1.2.3. setup management company onshore fees fund offshore holds clients money

1.3. what traders get paid (as of 2014)

1.3.1. Junior Portfolio Analyst (contractor) basic salary $160K no bonus no stock can invest in the strategy 1-2 years

1.3.2. Junior Portfolio Manager basic salary $300K bonus $400K small amount of stock in the HF structure 25% of the bonus reinvested in the strategy 3-5 years

1.3.3. Senior Portfolio Manager / Managing Director basic salary $800K bonus $3.5M stock in the HF structure 50% of the bonus reinvested in the strategy 3-5 years

1.3.4. Principals limited by assets under management

2. trading and portfolio management industry landscape - vast majority of professional traders work @

2.1. investment banks

2.2. hedge funds

2.3. others

2.3.1. Pension Funds (long only)

2.3.2. Private Equity (non publicly traded assets)

2.3.3. Inter Dealer Brokers (institutional brokers)

2.3.4. Retail Brokers

2.3.5. Retail Banks

3. check out my website @TradeBreakdown

4. Institute of Trading and Portfolio Management - University Tour 2013 Filmed at University College London (UCL) November 2013 Institute Education

5. investment banks

5.1. clients are

5.1.1. blue clip companies - mid to large size

5.1.2. pension finds

5.1.3. hedge funds

5.1.4. family offices

5.1.5. private equity companies

5.1.6. high net worth individuals - sophisticated investors

5.1.7. retail banks

5.1.8. investment banks have financial interest in their clients as well

5.2. structure

5.2.1. primary market where debt and equity is issued clients raise money in debt & equity markets

5.2.2. secondary market where assets (debt, equity) are traded after being made publicly available debt, equity traded by the traders setup cost center / profit centrer = 4/1 typical equities division trader @ investment bank what they do remuneration

5.2.3. ustilise public shareholders capital

5.3. what traders get paid (as of 2014)

5.3.1. Fiancial Analyst (contractor) basic salary $65K bonus $8K-$16K no stock 2-3 years, 20% make the cut

5.3.2. Assosiate (fulltime) basic salary $130K bonus $80K-$160K 15% stock 3-5 years

5.3.3. Vice President / Executive Director basic salary $300K bonus $200K 20% stock 3-5+ years most spend all their careers ate this level

5.3.4. Junior Managing Director basic salary $475K bonus $320K 25% stock

5.3.5. Senior Managing Director / Partner basic salary $800K bonus $1.6M 35% stock