A first job as a credit analyst in Pittsburgh eventually took him to Goldman Sachs in the 1980s heyday of junk bond trading, but when he was repeatedly passed over for partnership at the elite investment bank there he walked out to set up on his own. Mr Tepper is closing out one of the most profitable years any hedge fund has ever had. His fund is up $7bn (£4.4bn), and he’ll be taking a reported $2.5bn of that home personally.
At Lazard, the pace was brutal. Pellegrini often worked 14- hour days, turning off the overhead lights in the office at night and blasting Mozart and Beethoven on his stereo. Yet Pellegrini was not a natural investment banker. In 1994, the fees he was generating dropped as he failed to rope in clients. The next year, Pellegrini says, Lazard fired him. Paolo Pellegrini has a nose for trouble. He saw it in rising housing prices in early 2006, when he cranked through decades of home price data and concluded the bubble was poised to burst. Pellegrini then helped engineer a massive bet against subprime mortgages that catapulted Paulson & Co. hedge funds to 2007 gains of as much as 590 percent – and firmwide profits of more than $3.5 billion. Pellegrini, 52, pocketed tens of millions of dollars. PSQR’s gain from April 15, 2008, through December was 52.4 percent, according to a fund document.
MESSAGE: The HR department attempts to make recruiting a painstaking experience while adopting a so called scientific approach. Lets be honest, they are not fooling anyone, the element of luck remians one of the biggest factors influencing your application. The examples above highlights the kind of potential they fail to recognise. Try to work hard at finding an experience that will lead them to things that they like. I personally think IB’s like Morgan Stanley and Goldman Sachs are breeding grounds for future private equity professionals.