Multi-strat hedge funds like Citadel and Millennium are the new big banks
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Today, we've got stories on what to expect in the Federal Reserve's meeting today on interest rates, what you need to know about Google's answer to ChatGPT, and perhaps the most comprehensive ranking of Taco Bell menu items in the history of the internet.
But first, there's a new sheriff in town.
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1. Changing of the guard.
There's an old saying on Wall Street: You can only leave Goldman Sachs once.
The bank holds a level of prestige across the Street that trickles down to its employees. Having Goldman on your résumé, especially a senior designation like MD or partner, is arguably the biggest stamp of approval you can get in finance.
Insider's Alex Morrell has a fascinating look at how Goldman Sachs' top executives have headed to some of the top hedge funds in the world in recent years. The story has plenty of data on the trend, including charts mapping out top Goldman execs who have made the jump to Izzy Englander's Millennium Management and Ken Griffin's Citadel.
Poaching talent is a longstanding tradition on Wall Street, and the path from the investment banks to the buy side is a well-worn one.
But Alex's story is more than just confirmation that these trends are alive and well. It's an indication of the shifting tides on Wall Street between the firms that traditionally held all the power (big banks) and the ones usurping them (multi-strat hedge funds).
A big reason for this so-called changing of the guard is the regulations put in place following the 2008 financial crisis. Those rules limited the risks banks could take, thus lowering the potential comp bankers could earn.
And now, off the back of yet another banking crisis, it seems hedge funds are again positioned to be the beneficiaries. The downfall of Silicon Valley Bank will likely lead to more banking regulations, further limiting the earning potential of future bankers.
That's bound to push even more people toward hedge funds, which keep growing bigger every year, yet don't have the same regulatory oversight as their peers.
This too, I am sure, will end well.
Click here to read more about how Goldman Sachs alumni are getting poached by the world's biggest hedge funds.
In other news:
2. So about that interest rate hike... The Federal Reserve is set to announce what it plans to do with interest rates today. The announcement, which is always closely watched, is getting extra attention in the wake of the collapse of Silicon Valley Bank. Here's everything you need to know ahead of the decision and where the Fed might end up landing.
3. Credit Suisse bankers: "Get us outta here!" UBS' rescue takeover of Credit Suisse has been a boon to business for one industry: recruiters. Headhunters have been fielding calls nonstop from Credit Suisse bankers heading for the exits. More here.
4. Inside the whacky world of commodities trading. JPMorgan discovered that the $1.3 million worth of nickel in its warehouse was actually just bags of stones. It's just the latest mix-up in the world of physical commodities trading, which has been known to have these types of "mix-ups." From spray-painted rocks cosplaying as copper to forged documents, more on the the uniqueness that is commodities.
5. How things went so wrong for Vice. The media company went from a $5.7 billion valuation in 2017 to now scrambling to try and find a buyer. Here's the inside story of how things fell apart over the past six years.
6. Two Hollywood titans just raised $15 million for their startup trying to be the LinkedIn for Hollywood. The Oscar-winning pair of Ron Howard and Brian Grazer launched their startup, Impact, with a goal of helping producers hire behind-the-scenes crew members. More on how the startup wants to upend Hollywood. And check out our library of all the pitch decks that helped media and tech startups focused on the entertainment industry raise millions.
7. Buy now, pay later for businesses. Oslo-based startup Two wants to help ease payments between businesses by offering a buy now, pay later service. Here's the deck the Sequoia-backed startup used to pitch its vision when it was raising $19.3 million in fresh funds.
8. Google's answer to ChatGPT has arrived. Bard is the tech giant's AI chatbot. Here's everything you need to know about the new chatbot.
9. If you want to work at Deloitte, read this. David Rizzo, the head of talent at Deloitte US, shares some advice with us for future applicants. These are the top three things he looks for in a candidate.
10. Every item on the Taco Bell menu rated from worst to best. It's not an easy job, but someone has to do it. We ranked everything on T-Bell's menu, from the Beefy five-layer burrito to the famous crunchwrap supreme. Here's how all 54 items stacked up.
Curated by Dan DeFrancesco in New York. Feedback or tips? Email firstname.lastname@example.org, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Nathan Rennolds (tweet @ncrennolds) in London.
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