Enough about exec shuffles and defections in Hollywood. Check out Wall Street, where media and entertainment bankers, financial analysts and fund managers have been job hopping with unprecedented gusto.
Continued consolidation in the investment banking sector continues to force change. Salomon Smith Barney parent Citigroup, for instance, just bought Schroder & Co.’s investment banking business for $2.2 billion.
Mergers push some Wall Streeters into the job market, but in today’s media and communications-obsessed bull market, their services are in high demand — and salaries in the seven digits not at all unusual. Others chuck high-paying gigs to start up their own firms. “There are bigger opportunities in this space,” said broadcasting analyst Harry DeMott. He ankled Credit Suisse First Boston to launch Gothic Capital Management, where he will invest other people’s money directly instead of recommending stocks.
Interest in media and telecommunications is rivaled only by fascination with the Internet, he added, and the three overlap. He and other Wall Streeters have put together impressive nest eggs, he said, giving them “the financial wherewithal not to get paid for a couple of years” as they grow their businesses. And the red-hot stock market has made for lots of rich investors, so there’s more money out there to flow into new funds.
Other Wall Streeters are seeking greener pastures by changing firms, resulting in a frenetic round of musical chairs. And, a bouncy bull market makes it easier for analysts to pick winning stocks. With just about everything going up, the odds are on their side.
Here’s a rundown of some of the movers:
- Alan Mnuchin, media banker and former senior managing director at Bear Stearns, moved to Lehman Bros.
- Banker Mack Rossoff ankled JP Morgan to join Wit Capital Group.
- Entertainment analyst Larry Petrella left Lehman Bros. to become a media portfolio manager at Omega Capital Partners. He takes over for David Fiszel.
- Fiszel jumped to SAC Capital from Omega.
- Entertainment analyst Scott Davis moved to First Union Securities from Schroder & Co..
- Paul Sweeney of Salomon Smith Barney moved to CS First Boston to take over for Harry DeMott.
- Entertainment analyst Linda Bannister left Edward Jones in St. Louis to join Bank of America there.
- Cable analyst Doug Shapiro jumped to Bank of America from Deutsche Bank.
- Steven Rattner, former deputy chairman of Lazard Freres, teamed up with Lazard colleagues Peter Ezersky, Joshua Steiner and David Tanner to form a new investment company called Quadrangle Group.
- Banker Michael Yaegemann ankled Bank of America to set up his own shop, Yaegemann & Co.
- Former Bank of America entertainment analyst John Tinker did the same, launching a new hedge fund under the Steamer Capital banner.
- Harold Vogel, formerly of SG Cowan, recently created Vogel Capital Management and is putting together a hedge fund called Atriem Partners.
- ING Baring Furman Selz’s Michael Garin left for a tech venture, Digital Convergence. Roy Furman, his Livent days over, is back taking a more hands-on role at the firm he helped found.
- ING Baring Furman Selz analysts Stuart Halpern and Fred Moran ankled the firm with Halpern moving to Bank of America and Moran to Jefferies & Co.
- Broadcast analyst Timothy Wallace moved from Lehman Bros. to Bank of America.
- Entertainment analyst Dennis McAlpine exited Josephthal & Co. for Ryan Beck Research.
- Entertainment analyst Alan Kassan left Deutsche Bank Alex. Brown after his firm, Deutsche Bank, bought Bankers Trust and its BT Alex. Brown unit. He’s now at Mark Asset Management.