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INVEST MENT MANA
VAULT CAREER GUIDE TO INVESTMENT MANAGEMENT
ANDREW SCHLOSSBERG WITH ALEXANDER GORELIK AND THE STAFF OF VAULT
© 2002 Vault Inc.

Vault Career Guide to Investment Management

Table of Contents
INTRODUCTION 1

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 The Industry Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

THE SCOOP
Buy-side vs. Sell-side

3
11

Jobs on the Buy-side . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Jobs on the Sell-side . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Recommended Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

The Clients of Asset Managers

21

Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Institutional Investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 High Net Worth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Investment Styles

33

Type of Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Risk Characteristics of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Portfolio Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Summary of Investment Styles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 How Is This Relevant to My Job Search? . . . . . . . . . . . . . . . . . . . . . . . .42

ON THE JOB
Portfolio Management 45

The Three Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Senior Portfolio Manager . . . . . . . . . . . . . . . . . . . . . . . . . . .

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