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Welcome To Mentorship!
Abhijan Khosla (Director of Mentorship)
GTSF Investments Committee2
Welcome Please bring your laptop to every session Questions are very important, if you have a
question don’t hesitate to ask We will meet from 6 -7 p.m. every Tuesday
and Thursday for the next 4 weeks My email – [email protected] Feel free to email questions, comments or
concerns Mentorship sign-up;
tinyurl.com/mentorship13
GTSF Investments Committee3
How Mentorship Works 1 hour sessions Topics covered
Careers in finance and Macroeconomics Market Basics Finance and Accounting basics Moc Pitch Week
2 sessions are reserved for a meet and greet and moc-pitch session
After session 8 you will be tested on what you have been taught during mentorship
GTSF Investments Committee4
Meet and Greet and Moc Pitch These two sessions are very important They will take place on the 17th and the 19th 17th
Meet and Greet 10 minutes with each SA Ask good questions and learn about how their
sector works 19th
2 hour session you are the analyst! you will be making and pitching a company to
your peers
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Who Am I?
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The GT Student Foundation(GTSF) Founded on January 26, 1986 J. Erskine Love Jr. donated $100,000 to
promote philanthropy at GT One of the few solely student operated
collegiate organizations in the nation Awards grants to student organizations that
enhance Georgia Tech Funds are granted by an endowment run by
the IC 2013 CASE ASAP Outstanding Org of Year
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GTSF Committees1. Allocations2. Development 3. Investments 4. Financial
Programming5. Events6. Marketing 7. Freshman
Leadership Initiative (FLI)
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GTSF Committees Allocations
Has given $550,000 to over 300 organizations Development
Act as liaisons that educate the student body about GTSF and urges participation through GT Roll Call
5,200 donors last year Investments
Nearly $1MM (975K) under management Largest student run endowment in the nation We are a long only endowment We donate our dividends and some portion of cash
holdings (~ 20K) a semester back to GT student organizations
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GTSF Committees (Cont) Financial Programming
Hosts an investments speaker series and finance career fair
Runs a financial literacy program to help high schoolers learn about basic finance
Events Focused on planning and implementing GTSF Gives
Back and Philanthropy Week Marketing
In charge of managing the GTSF brand Freshman Leadership Initiative (FLI)
Open only to freshman, prepares them for leadership roles throughout GTSF
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IC Organizational Structure
IDG
Sector Analyst
s
Analysts & General
Members
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Sectors of the IC1. Financials - Arjun Gopinath2. Health Care - Andrew Reed3. Industrials - David Langley4. REITs - David Barr5. Services -Raymond DeCuir6. Technology - Saxon Bartsch7. Energy - Corey Nettles8. Consumer Cyclicals - Brandon Bane9. Consumer Staples - Michael Schmit10.Fixed Income - Eric Keener11.Alternative Investments - Brandon Danzig
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Careers in Finance
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Possible Finance Careers Investment Banking Commercial Banking Sales and Trading Asset Management Wealth Management Hedge Funds Private Equity Venture Capital Corporate Finance
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Investment Banking Strategic Advisors providing services and
finance advice to companies i.e. recommending a potential acquisition
Make money for advising and transacting Split into Bulge Bracket (large), Mid Market
(medium) and Boutique (small) firms Typically hire students out of college for a two
year analyst program Pay: ~ 70K + bonus (can be a significant % of
base based on deal flow) Depending on area of the bank hours range
from 60 - 100+ per week
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Commercial Banking Loan money to companies and take deposits Make money on the difference between the
lending rate and the deposit rate Focus on the creditworthiness of borrowers Usually hire out of college for a two year
credit analyst program - may have a rotational component
Pay: ~ 50K + small bonus Hours : 40 - 80 depending on work flow and
area of the bank
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Sales and Trading (S&T) Sales - sells the product Trading - trades the product on the open
market Work in tandem to grow revenue for the bank Sales generate revenues by charging
commission on the product being sold Trading manages risk for the bank and makes
money positioning themselves correctly in the marke
Hours: vary by product usually 60 - 80/week Pay: ~ the same as IB + bonus more closely
tied to performance
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Asset Management Team within a firm dedicated to managing
client’s assets via a defined strategy Run by dedicated Portfolio Managers with
access to in depth research making them more informed than retail investors
Usually offered to high net-worth individuals, pension funds, corporations
Make money from a management fee (2%) on all assets under management (AUM)
Hours: 50 - 70 hours/week Pay: ~65K + small bonus (5-10 K)*
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Wealth Management Customized money management solutions Usually deal with high net-worth and ultra
high net-worth individuals Often requires going beyond simple investing
to other finance related activities such as tax planning, accounting, and estate planning
Make money from a management fee (depends on the services provided)
Hours: 50 - 70/week Pay: ~65K + small bonus
GTSF Investments Committee19
Hedge Funds Provide investment opportunities to wealthy
investors seeking to grow their investments Don’t disclose their strategies and aim at
generating the maximum return possible for their client base
Can pursue gains in any legal way they want and often use exotic products as well as leverage to maximize returns
Make money by charging a management fee on assets (2%) and a fee on profits (20%)
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Private Equity (PE) Purchase controlling interests in private
companies with the goal of taking them public or selling them for a profit in the future
Use their ownership stake to implement management change, provide financial advice and improve company operations
Most PE firms have a diversified portfolio of companies in which they invest
Make money through the sale or IPO of companies in their portfolio
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Venture Capital (VC) Provide funding to companies in return for an
ownership interest - invest other people’s money
Help to grow ideas into successful companies via funding and expertise
Usually 3 stages of VC (early, middle and late) Early stage investors invest in ideas and very
young startups, and the later stages are more like PE
Make money from selling equity interest Angel investors are very similar to VC’s but
they only invest their own money
GTSF Investments Committee22
Corporate Finance Help corporations manage financial risk that is
found in all aspects of the business Counterparty risk - both supplier and customer Commodity risk Currency risk Interest rate risk
Make money by helping the company manage risk Individuals hired out of undergrad usually
participate in a rotational program seeing how finance impacts the business
Hours: Vary widely (40 - 80) Pay: 60K + small bonus
Why do we care about macroeconomics?
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Central Banks What is a central bank? What is the purpose of a central bank? What are the main central banks in the
world?
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Interest Rates What do global interest rates represent? What has been happening with interest rates
recently? Why do countries have different interest
rates? What is QE? Why does everyone care about it?
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Quiz Time!In what year was the student foundation
created?1. 19922. 19803. 19864. 1984
GTSF Investments Committee31
Quiz Time!In what year was the student foundation
created?1. 19922. 19803. 19864. 1984
GTSF Investments Committee32
Quiz Time!Which of the following is NOT an GTSF
Committee?1. Allocations2. Advertising3. Financial Planning4. Development
GTSF Investments Committee33
Quiz Time!Which of the following is NOT an GTSF
Committee?1. Allocations2. Advertising3. Financial Planning4. Development
GTSF Investments Committee34
Quiz Time!My career opportunities in finance include
1. Hedge Fund Analyst2. Investment Bank Analyst3. Corporate Credit Analyst4. Oil Futures Trader5. All of the Above
GTSF Investments Committee35
Quiz Time!My career opportunities in finance include
1. Hedge Fund Analyst2. Investment Bank Analyst3. Corporate Credit Analyst4. Oil Futures Trader5. All of the Above
GTSF Investments Committee36
Next Time Markets!
How the markets work How we make investment decisions