<p>For those of you who are either in Harvard or knows someone who is enrolled at Harvard Business or any finance-related fields, I would like to question the types of firms that are available in Harvard's recruitment facilities....? (i.e. JP Morgan, Bridgewater Associates, D.E Shaw). And more importantly, out of the people who major in finance, what percentage of the population do you think gets recruited by firms at least with the reputability of Goldman Sachs? So, for example, I attend University of British Columbia, and I know that around 4-6 people out of 400 get admitted by internationally recognized "brand-names" such as Goldman Sachs and JP Morgan. Thank-you.</p>
<p>As a disclaimer, I did not attend Harvard (or HBS) myself, but some of my oldest and closest friends are currently enrolled in (or have graduated from) both the College and B-School. </p>
<p>I can tell you that, as a former Analyst at a top Bulge Bracket, Harvard students continue to command the most intense, professional interest from recruiters. You won’t see a single, extremely legit group (regardless of division), whether it be the Special Situations Group in NY, SF’s TMT Investment Banking, or the Principal Investment Group (amongst many more examples) fail to brandish at least one Harvard grad in their arsenal of intellectual might. The reason, as you probably already know, is simple: the Harvard admissions barrier is an extremely reliable proxy for competence and projected ability, and vetting the core strengths of candidates come recruiting season is reduced to a simple exercise in administering verbal EQ assessments. </p>
<p>Now, schools of debatably equivocal cachet (the remaining “YPS”, in CC parlance) draw the ultra-polished Wall Street recruiting vehicle, which is bankrolled by pockets of unfathomable depth, to their university career centers with equal fervor. Goldman Sachs, along with JPMorgan, Morgan Stanley, Barclays, Citi, Wells Fargo, Deutsch Bank, etc., tend to host information sessions of varying exclusivity (depends entirely on the “marketing” might of the group, so, for example, IBD/PWM/S&T [called Securities within the firm] will present indiscriminately [in some impersonal auditorium usually] to the Harvard undergraduate population in open-invite affairs that typically attract a venue-busting oversubscription of eager applicants, while the more cerebral GIR [Global Investment Research – Goldman’s equity research arm] division would sometimes initially solicit resumes before inviting the most promising candidates to an intimate overview of their group in a more personal setting) for the front-office (FO) positions, which are the most coveted entry-level positions at the firm, and are typically fast-track tickets to a wealthier, better** life. This is in contrast to back-office (BO), and increasingly, middle-office (MO), roles, which function as the entire supportive infrastructure for the FO guys–the support staff for the internal GS system, the risk management, the bookkeepers, the IT armada. Basically, the BO and MO doesn’t directly generate revenue for the firm; rather, they do whatever they can do enable and enhance the ability for the FO to generate as much money as possible. </p>
<p>Roles for MO and BO are typically career black holes–there exists a vanishingly small chance for a BO Analyst to eventually (or ever) pivot to a top hedge fund (HF) like Renaissance Technologies or Bridgewater Associates, join a top PE shop like Blackstone or TPG, or even seriously contend for a slot at HBS–and so BO recruiters will avoid the pool of pedigreed Alphas from HYPS or MIT/Berkeley/Ivies (who would avoid these BO roles) and opt for candidates from the top 30-150 undergraduate schools, who are smart, but aren’t typically brimming with the qualities FO recruiters actively seek out. Postings for FO opportunities in the Bulge Bracket will dominate the finance-related listings on the Harvard recruitment portal because many positions at D.E. Shaw, Citadel, Jane Street, Hudson River Trading and other quantitative hedge funds, which will still nonetheless appear, tend to require a graduate, technical degree. However, you can expect a nontrivial number of your Harvard classmates to boast the necessary and sufficient qualifications to succeed in some entry-level capacity at these extremely-competitive HFT shops, and because many of Harvard’s technical superstars tend to succeed more often than not, the likes of D.E. Shaw and Morgan Stanley’s PDT will continue to frequent your recruiting portal and post career opportunities (albeit at a lower enthusiasm and number than Bulge Brackets, which tend to populate their lower ranks with scores of polished undergraduates). </p>
<p>Now, there is a trend for Economics majors (I don’t believe Harvard offers a Finance major) to gracefully bow out of the finance rat race and opt for, say, public policy. In fact, last I checked, whereas 17% of Harvard graduates pursued finance full-time out of graduation in 2011 (Princeton sent 36% of their graduating class to Wall Street, and this definitely shows in the Analyst classes at Goldman Sachs, Morgan Stanley, etc.), this statistic is dropping precipitously (see Ezra Klein’s magisterial exposition on the Ivy League’s affinity with financial services). Expect, however, that an Economics concentration at Harvard pits you against the highest possible population of indiscernible, equally-smart, high-status individuals, because the major draws the largest crowd in the College. </p>
<p>Wall Street allows extremely bright, extremely ambitious, pedigreed and personable individuals the opportunity to work with people similar to themselves, enjoy nosebleed earnings potential, and work in desirable, urbane cities around the nation. As firms continue to assert their power and utility in global economic progress, you can expect the financial services recruiting machine to rear its head every season like clockwork, and lure the risk-averse talent to a fascinating and important sector. </p>
<p>** - “better,” iff you proxy exclusivity, prestige, and earnings (both current and potential) for success in life</p>