Back to John Gapper's Business Blog homepage
Why tennis is like investment banking
July 7, 2008
The FT story about Driss Ben-Brahim of Goldman Sachs leaving to join GLG Partners and run an emerging markets fund and other things says something about the balance of power between investment banks and hedge funds.
But what struck me as more intriguing is Mr Ben-Brahim’s nationality - he is half-Moroccan and half-Austrian and was brought up in France. He is thus a perfect example of the polyglot nature of the modern City of London.
Investment banks have many flaws but one of their strengths is the extremely diverse nature of their employment practices. That reflects a broader truth about them, or about their trading divisions : they are among the most meritocratic of employers.
People compare the City to the Wimbledon tennis tournament: a competition hosted by the British in which foreigners excel. This weekend, for example, the Swiss Roger Federer was beaten by the Spanish Rafael Nadal in the men’s championship.
Tennis and financial trading are also activities in which individuals can be judged objectively against each other on the basis of what they can score, either on the court or in financial markets. They are, ultimately, zero sum games. One player wins only when another loses.
Tennis and financial trading are also activities in which national barriers do not count for much. It may help to be brought up in a country with good training facilities but the most talented can move around the world to find the most conducive environment.
As a result, it is not suprising to find a Spanish player winning Wimbledon, or an Austrian-Moroccan being snapped up by a hedge fund.
