If you know mining, you might be able to parlay that experience into an investment banking analyst job at one of London’s top asset managers.
Bloomberg reports that giant firms such as BlackRock Inc., the world’s largest asset manager, Paulson & Co., and UBS AG are spearheading a search for London-based mining analysts, as banks, brokers and hedge funds look to beef up their coverage of the $350 billion sector in the UK.
“We haven’t seen this much movement before. It’s the hottest sector in the market right now,” Philip Charsley, director of financial markets at London-based Hays Plc, the U.K.’s biggest recruitment firm, told Bloomberg.
Surging prices for metals, and the fact that the weighting for basic materials stocks on the UK FTSE 100 Index has roughly tripled to 14.5 percent of the index, since 2004, is driving this demand for greater analyst coverage.
Mining sector analysts have highly specialized knowledge, which gives them the pick of the opportunities right now. “In the case of mining you will be found out in seconds if you don’t understand the sector really well,” Charsley said.
The resource sector is increasingly important to clients, and many firms are now making significant investments to upgrade their coverage teams following metals and mining companies. This includes BlackRock, which runs the $17.8 billion World Mining Fund, and is the largest stockholder in Melbourne-based BHP, the world’s biggest mining company.
The game of musical chairs in the industry has begun. The top-ranked mining analyst team in Europe, according to the most recent Extel survey, was Ephrem Ravi and Carsten Riek, both of Morgan Stanley. However, Barclays Capital in Hong Kong has lured Ravi over to their firm. And Riek will be joining UBS to co-lead coverage of the European steel sector.
Other firms looking to beef up their mining coverage include Macquarie Securities Group, Nomura, ING, Goldman Sachs in London, and Glencore.
What’s your take? Do you think the current surge in mining and resource sector business will continue, despite the turmoil in markets right now? Add your comments below.