Investment banking isn’t all dollar signs and champagne toasts.
Though despite the signs of a possible economic recession, many students at UCLA are eager to enter the field of investment banking.
“I found it much more competitive and much more stressful than any of the other fields I applied for,” said Matt Atkin, a fourth-year business economics student who is planning on working at Citigroup after graduation.
The highly competitive nature of jobs in the industry has fostered the growth of numerous programs looking to give students experience in investing.
The Student Investment Fund within the UCLA Anderson School of Management is one of the unique programs that allows 10 graduate students the opportunity to manage a real portfolio for a year.
Professor Bill Cockrum, who oversees the course, was fundamental in facilitating its creation.
“There was an alum that had an idea ““ they wanted students to learn how to manage money,” Cockrum said. He added that donors refused to create the fund unless students managed the money.
The fund was started in 1987 with a $50,000 donation, and since then it has grown to $2 million with the growth of the initial investment along with the continued support of alumni.
Managing the fund is an intensive endeavor. Ten out of 50 people who apply are selected by the previous students, or “fellows” as the managers are called, and begin an 18-month course designed to provide practical application of investment theory.
A pivotal role of the program is its ability to give students exposure to diverse types of investing as well as form connections with industry professionals.
“During the 18 months, students will visit 30 investment management firms to learn how they manage money and make decisions,” Cockrum said.
However, the fund’s benefits reach further than just those enrolled. Each year about 5 percent of the fund is used for scholarships, giving back $125,000 to the Anderson School of Management.
Though students gain valuable experience, the course can duplicate the difficulties of the industry.
“Managing money is stressful,” Cockrum said.
Along with programs provided by the school, student-run groups have arisen at both the graduate and undergraduate levels to help members meet potential employers.
The Undergraduate Business Society is one of the groups at UCLA that tries to connect students and professionals.
“We have seven different committees who work to put on specific events. We have speakers who come in and talk, recruiters who interact directly with students and networking workshops,” said Matt Anderson, a third-year economics/international area studies student and president of the Undergraduate Business Society.
Anderson, who worked at a hedge fund, said he believes creating connections is often crucial to employment.
“The process of getting (a job in this field) is half the battle. I would say in my case, having to get the job was more stressful than the job itself, but it can vary,” Anderson said.
While managing money can be overwhelming for some, Anderson worked under an advisor who ultimately made the final decisions.
“I never really felt the full burden (of the job),” Anderson added.
Atkin said he believes the skills he learned from introduction sessions at the Undergraduate Business Society and other campus organizations can help students interested in investing with future jobs.
“It’s a really good opportunity to get experience with recruiters in a formal setting,” Atkin said.
Past participants say students who think they might be interested in investment careers should explore the options as soon as possible.
“What got me started was a combination of conversations with a couple of friends. I was interested in what they had to say and I started to check it out,” Anderson said.
The organization tries to prepare students to make the kinds of decisions an investment banker would make.
The society recently concluded a three-month staff market competition during which 60 to 70 students tried to manage a mock portfolio.
Though the money might not be real, the experience is, and companies are looking for people with as much insight as possible.
“You need a pretty strong knowledge of the industry before you go in,” Atkin said. “Start early.”