The hottest hedge fund manager of the moment is not a former proprietary trader at Goldman Sachs. Nor is he a former proprietary trader at any investment bank. – He’s an ex-games programmer.
Admittedly, Igor Tulchinsky, gaming programming days happened a long time ago. Back in 1985, he was creating rudimentary video games reminiscent of Pacman. 30 years later, Tulchinsky’s hedge fund WorldQuant has become the first fund to be selected for a joint venture by Israel “Izzy” Englander, founder of hedge fund Millennium Management LLC. WorldQuant already employs 400 people at its 12 offices globally, and this is likely to grow as assets under management expand under the new deal.
What does it take to impress Tulchinksy? This article from 2013 lays out his investment philosophy. Tulchinksy says the challenge for quant managers is, “extracting signals from an ever-expanding ocean of noise… good signals often arise where least expected. How does one extract such signals? By limiting the search space, using methods previously used by treasure hunters: Search in the vicinity of previous discoveries; Conserve resources to avoid digging too deep; Use validated cues to improve the probability of a find. Yet always allocate some processing power to test wild ideas.”
If you want to work for Tulchinksy, you’ll probably need to be based outside the UK. Although WorldQuant has an affiliate office in London, its main trading offices are in Greenwich and New York. However, all of its research staff (and nine of its 12 offices) are based in low cost locations like Bangkok and Mumbai.
Separately, just as Deutsche Bank has indicated its intention of pulling back from fixed income currencies and commodities (FICC), J.P. Morgan is strengthening in the area. Bloomberg reports that Kanav Bhagat, former global head of JPM’s rates business, has just been replaced by co-heads Charles Bristow and Thomas Pluta. Bristow, a Cambridge engineering graduate, joined the bank after a summer internship in 1999 and has been there ever since.
Deutsche Bank said it wants to deliver €3.5bn in savings, but it didn’t say exactly how it plans to do that. (Financial Times)
The great irony of Deutsche’s pullback from investment banking: “Q1 results were one of the best post crisis and ahead of our top-of-street estimates… We estimate Deutsche Bank made c. 14% clean return on tangible equity in a spectacular CBS quarter.” (WSJ)
Deutsche Bank employs 6,000 people in London. (The Times)
Chris Lees, a managing director on the debt syndicate desk at Bank of America Merrill Lynch, is leaving the bank on Friday and will be taking time out of the industry. (Reuters)
HSBC’s $2.6 trillion balance sheet is almost 10-times Hong Kong’s economic output. (WSJ)
There still aren’t many women working in private equity. (Bloomberg)
How to subtly add keywords to your resume: include a ‘skills summary’ at the top of the page. (Forbes)
The best and worst fonts to use on your CV. (Bloomberg)
Why I prioritize exercise above work. (Entrepreneur)