JP Morgan prop desk - worst results in recent memory

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Can someone explain as to how the Hedge Fund traders get like 20% of the gains that fund capital makes. The fund's returns say 30% belong to investors and from that 20% average i.e. 6% in this case, is taken by the incentive fees so basically investors make 24% before taxes.

Do the traders get a share of this 6% that hedge fund makes from the incentive fees. Why most traders are going to hedge
fund from the banks as mentioned above. Cheers!

 

[LaszloChi]

What if you work for a firm that treats you like absolute SHIT day in and day out?

You wouldn't be motivated. You wouldn't be inclined to do jack shit except make the minimum to get by, then collect your lovely paycheck every 2 weeks, and hope that someone who isn't burnt out (or a newbie who has a streak of luck in Q4) makes it up for the rest of the desk so you get a collective bonus.......


Sad but true. Many people hold these firms in high regard. Very few are actually somewhat decent places to work at. It doesn't and will not surprise me if many more firms start reporting bad quarters from trading.

And FYI, yes, I'm still stuck here, doing the minimum, putting up with BS every day But I love the industry too much

-cbk (other alias ChiBondKing.. I saw Laszlo on CNBC and his strangly voice.. I couldn't get the name out of my head, so this is a practical joke to the Chi folks)

 

[toc]

"What if you work for a firm that treats you like absolute SHIT day in and day out?"

What do you mean by this, when you pull a loser trade do they eat your ears and even call names?

 

[FredBloggs]

Quote from LaszloChi:

What if you work for a firm that treats you like absolute SHIT day in and day out?

You wouldn't be motivated. You wouldn't be inclined to do jack shit except make the minimum to get by, then collect your lovely paycheck every 2 weeks, and hope that someone who isn't burnt out (or a newbie who has a streak of luck in Q4) makes it up for the rest of the desk so you get a collective bonus.......


Sad but true. Many people hold these firms in high regard. Very few are actually somewhat decent places to work at. It doesn't and will not surprise me if many more firms start reporting bad quarters from trading.

And FYI, yes, I'm still stuck here, doing the minimum, putting up with BS every day But I love the industry too much

-cbk (other alias ChiBondKing.. I saw Laszlo on CNBC and his strangly voice.. I couldn't get the name out of my head, so this is a practical joke to the Chi folks)

no company treats its top producers like shit.

talk about biting the hand that feeds you!

i used to know a head of desk at bnp. he wasnt THE top producer, but did ok. if you call being thrown the keys to the company swiss chateau for a weekend skiing - all expenses paid (on a regular basis) etc being treated like shit then i guess i just havent been born!

 

[LaszloChi]

Quote from toc:

"What if you work for a firm that treats you like absolute SHIT day in and day out?"

What do you mean by this, when you pull a loser trade do they eat your ears and even call names?

The names thing I don't really care... Call me whatever you want (trust me, I've been called every name in the book A-Z)

FredBloggs mentions that the top producers aren't treated like shit... That is true to some degree, but incompetent desk managers changes the equation.

Oh well, it was fun just to vent. I'm sure 90% of the firms reward the top/mid producers. I can understand wanting to make the bottom producers' lives miserable.

 

[sle]

Quote from FredBloggs:
no company treats its top producers like shit.

no, what actually happends is that they promote you to the point where you have to manage people and deal with corporate issues like budgets. it's worse then being called names and yelled at. to me, it felt like going from a dating (actual producing phase "you made 20 units for the desk, let me kiss you") to honeymoon (" good work this year, here are the tickets to US Open, here is an invite to conference in France" etc) to a full blown married life with kids, leaking roof and busted heating.

 

[CPTrader]

Quote from mcurto:

Rumor on the CBOT floor that one of JP's big prop traders was short on the order of 200K Ten-years into the whole rally last couple months. Slowly covered them but cost couple hundred million. Was also short Eurodollars. This same guy put on a bunch of 1x2's in the Jan, Feb, and March option expiration cycles earlier this year in the Ten-year note and made a killing because of the low vol environment. Anyone else hear anything on this?

200k TEN YEARS is a HUGE position. that's $200M for each 1pt move against you. Why such large size? SIZE KILLS! Are your facts right??

 

[Copernicus]

Quote from toc:

"What if you work for a firm that treats you like absolute SHIT day in and day out?"

What do you mean by this, when you pull a loser trade do they eat your ears and even call names?

Circle T partners , Seth Tobias' firm, guy that speaks on cnbc although not lately, and the guy that cramer calls set the asshole tobias, anyway, one of their traders took some crazy positions.
there was a statement on friday saying he lost 10% or something. they fired his ass.

 

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(" good work this year, here are the tickets to US Open, here is an invite to conference in France" etc) to a full blown married life with kids, leaking roof and busted heating.

Like the analogy above. Life of a manager is not easy. Better to devide your team into 4-5 subgrouppen and the best prdoucer becomes the specific team-leader for say a quarter. Micro manage might yield better results.

 

[mcurto]

The numbers I heard were from anywhere between 150K and 250K ten year notes that this guy was short. Yes, it is a huge position, and heard that it cost him a couple hundred million to unwind as it went against him. Relatively speaking though, the same JP Morgan guy did 1x2's in the Ten year options to the tune of 60,000 by 120,000, one of them in one day, during each of the Jan, Feb, and March option expiration cycles of this year. The premium debited or credited to put on such a position was easily 20 to 30 million. It was during this time the Ten-year managed to expire at the 112 handle for three expirations in a row, he would come in and sell the 112 calls or puts and buy the 111 calls or the 113 puts against them. Guess its tough to win every time, he went from thinking low vol environment, to getting massively short, and this rally the last couple months hurt Morgan's whole bottom line.