As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome • Hacker News Board

Re: As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome

#111

Post by leroy_masochist » Wed, Feb 20, 2019, 1:50 PM UTC

staticautomatic wrote: post #110

leroy_masochist wrote: post #31

Earlier quoted context omitted.

That wasn't banking, it was sales and trading. While Birnbaum and the other individuals involved in Abacus acted especially douchey in front of Congress, the point that was apparently lost on many people was that when a market maker sells something off their prop books, they are inherently short that thing

It's funny that you write are if they're separate companies.

They contribute to the same company's P&L but functionally speaking they're separate, as specifically dictated by numerous securities laws

Re: As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome

#112

Post by rburhum » Wed, Feb 20, 2019, 9:19 PM UTC

b_tterc_p wrote: post #30

Seems highly unlikely that there’s any actual secretive insider trading happening here. It would be a HUGE risk for practically no gain, distributed across many individuals, committed by primarily people who wouldn’t stand to benefit. The firm should probably switch to vanguard or whatever... but the existence of this hedge fund does not mean the firm is using its insider knowledge maliciously. Most consultants won’t…

This is McKinsey's official response: https://www.mckinsey.com/about-us/media-center/mckinsey-stat...

Re: As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome

#113

Post by theNJR » Wed, Feb 20, 2019, 9:30 PM UTC

rchaud wrote: post #83

theNJR wrote: post #34

Man, the NYT really has it out for McKinsey. Anyone know why?

A newspaper article about a powerful consultancy is "having it out for McKinsey?" NYT must have a long list of enemies in that case.

They've had at least three reports about McKinsey since December.

Re: As McKinsey Sells Advice, Its Hedge Fund May Have a Stake in the Outcome

#114

Post by Nicholas_C » Mon, Feb 25, 2019, 9:45 PM UTC

the_watcher wrote: post #105

Nicholas_C wrote: post #104

Earlier quoted context omitted.

In the short time I worked for a bank during an internship it was very apparent that there is training one goes through regarding this sort of thing and a very formalized processes with strong rules about how you can even contact the other side of the house. I doubt McKinsey has this structure. This is a pretty softball take by Matt Levine.

Why would you assume that McKinsey doesn't also have a Chinese wall with training that MIO employees have to go through?

I would assume that since McKinsey is a consulting firm primarily they don’t have to comply with the same regulations that a bank does.