Late Lunchtime Links: The abused, unhappy existence of the hedge fund salesperson

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What it's like in hedge fund sales

Hedge fund sales has long been the place to work: big hedge fund clients place frequent trades and generate high commissions.

However, the case of Lewis Chester of Pentagon Capital Management illustrates the dark side of a glamorous career in hedge fund sales: working with hedge fund managers.  The investigation which led to Chester’s market abuse conviction turned up numerous nasty emails sent by Chester to his brokers.

In one particularly incriminating message, Chester berated his brokers for being, a “bunch of women of the first order,” stating: “ Poor souls, working past cookie and milk time...for once in your lives, you can work like real men and do a proper day’s work.”

Chester may be an extreme case, but we suspect such things are quite common. Big hedge fund clients come with big egos. Brokers are there to massage them and take the abuse – like a man.


42 year old Andrew Osborne, the Merrill broker whose advice resulted in a $550k fine for David Einhorn, says the fine wasn’t fair. (Bloomberg)

FSA releases all the details of the Einhorn call. (FSA) 

According to Accenture research, before the financial crisis of 2008, the banking industry typically had returns on equity in the region of 20 per cent; now they average about 9%. (The Times)

BNP Paribas has a return on equity of 8.8 per cent (compared with a cost of capital of about 10.5 per cent). (Financial Times) 

George Osborne wants the next governor of the Bank of England to have real banking experience. (Bloomberg) 

Deutsche Bank’s head of structured products has left the bank after 17 years. (Bloomberg) 

Grant Thornton is expanding its private clients business. (Financial News) 

Moody’s may cut the long-term credit rating of UBS, Credit Suisse and Morgan Stanley by as much as three notches. (Telegraph) 

Vontobel has provided some very detailed information on how much water its employees drink each year. (Vontobel)