The Citadel campus recruitment team is facing a challenging task after the hedge fund’s founder, Ken Griffin, referred to Harvard students as whiny snowflakes who are lost in the wilderness of microaggressions and subject to a DEI agenda. This derogatory statement has sparked controversy and could potentially lead to a heated Q&A session during the presentation. While online comments at the Harvard Crimson have shown support for the students, hedge fund leaders generally take care to protect their employer brand and avoid aggressive remarks towards elite students.
Griffin’s dissatisfaction with Harvard seems to stem not only from recent public statements made by faculty regarding the Hamas attacks on Israel and campus antisemitism but also from a broader disagreement with the institution’s values and ideology. Despite this, Griffin, an alumnus of Harvard, has paused his donations instead of canceling them, indicating that he may resume donating in the future once Harvard aligns with his views. This situation may follow a similar trajectory to Griffin’s disagreement with the Whitney Museum in 2019, which was eventually resolved relatively quickly.
While it remains unclear how Griffin feels about Harvard’s peers, it is unlikely that the Citadel campus team will face a shortage of enthusiastic undergraduates vying for internships or lucrative careers. Harvard students are unlikely to pass up such opportunities simply because of Griffin’s critique. Moreover, considering the current economic climate, Harvard students may be more motivated than ever to prove themselves as resilient and unique individuals.
In other news, Nomura recently announced lay-offs affecting approximately 60 employees, primarily in the investment banking business. These reductions follow a plan to cut costs in the wholesale banking division by $100 million, which included 20 headcount reductions in October 2023. Firms are facing the challenge of balancing their staffing needs in unpredictable markets while also managing cost bases. However, relying on redundancies as an earnings smoother can have long-term repercussions on their employer brand and future hiring.
The FX trading team at Wells Fargo is on track to rehabilitate its reputation under the leadership of CEO Charlie Scharf and Rob Hitschler, a veteran from Deutsche Bank. Despite a past scandal involving overcharging, the team has set targets to double revenues within five years and has been making progress towards achieving this goal.
Three Arrows Capital, a crypto fund, faced bankruptcy in a spectacular fashion. Co-founder Su Zhu, who appears quite unfazed, humorously stated, No one wants to go to prison, but I think it’s actually a really enjoyable experience overall, while his fellow co-founder Kyle Davies’ whereabouts remain unknown.
Although the short Jim Cramer exchange-traded fund (ETF) has been wound up, we can expect to see the continued emergence of thematic funds. These funds allow investors to express their views on various topics such as cannabis, artificial intelligence, cryptocurrencies, or even to engage in trolling TV presenters. The ease and affordability of setting up new passive indexes contribute to this trend.
The departure of Jim Esposito from Goldman Sachs has led to speculation about the bank’s succession planning. Some view the role potentially falling to Goldman President John Waldron if he remains with the firm long enough. The implications of this departure remain to be seen.
Philippe Andurand, despite experiencing a 55% drawdown last year, remains calm and collected. He has written a letter to investors explaining his perspective on where the market has misunderstood his investment strategy.
Lazard Asset Management has undergone an overhaul of its sustainable investment team, resulting in the departure of Nikita Singhal. The team will cease operating under a co-head structure. This change raises questions about the future direction of Lazard’s sustainable investment initiatives.
Mohnish Pabrai, founder of a hedge fund, took the opportunity to remodel his library when his fund went remote. After spending $180,000 on interior design, his library now serves as the ultimate remote space with enough room for all his books. The addition of full blackout curtains allows Pabrai to enjoy a nap whenever he desires.
Overall, these diverse developments in the financial industry showcase the complexities of various institutions, individuals, and trends. The ever-evolving landscape requires careful navigation and adaptability to succeed in a highly competitive global market.
