Sam is an SUU alumnus who is now in the MBA program at Wharton. He came to do a convocation for business school students in the spring.
Here’s a couple vignettes (that I’m posting here for the edification of future students). Sam got a job out of SUU for a mutual fund company, and was put on the overnight trading desk.
- The scale of his trades was that he traded up to $10B a night, and on a good night made $1M for the firm (that’s an annualized rate of 3.7%).*
- One time he made an oversight, and executed a trade on $25,000,000 of securities that the firm no longer owned. He did the right thing, and went to his boss and confessed. The boss was supportive: they bought the securities to make the trade good, and then zeroed out the mistaken position. Sam was lucky: the firm ended up netting $700.
I’m happy for Sam (a veteran of my FIN 4250, Advanced Managerial Finance class, from spring 2006).
* No knock on Sam, but this experience is common. Many people around the world are asked to trade such sums, and they are largely interchangeable.