The Success of Ricardo Guimaraes During his Term in Banco BMG

Banco BMG has made much progress especially after it formed a joint venture with Itau Unibanco to operate in the payroll loan segment. This process was meant to make its management more professional through the hiring of new executives. The changes involved include a structure that will fit the Pentagna Guimaraes family that has always controlled the company to join the new group of professionals.

The primary aim of this process is to ensure the new move of doubling the payroll loan portfolio is well-managed as products that do not add value to the bank will be eliminated. After the process of joining is completed, it is expected that the Chairman of Directors currently held by Flavio Pentagna Guimaraes will be passed to Alcides Lopes Tapias. He has been very successful for managing Itau Unibanco and Bradesco and being the president of Brazilian Federation of Banks and experience in the Ministry of Development Industry and Foreign Trade.

The executive presidency will also be passed from Ricardo Annes Guimaraes to Antonio Herman. Herman was previously the executive President of Brazilian Association of Banks (ABBC). Indeed, BMG has had an upward progress over the last 80 years. Being the market leader in the credit business in Brazil, the trend going forward should be to maintain this position by offering the best services. However, the names of the two executives will have to be approved by the board and the central bank. The new Itau BMG consigned bank would aim to supply, market and distribute the payroll loans.

BMG gained in market share this year when it acquired Banco GE Capital S/A, the provider of General Electric (GE) services and promoter of sales from GE. Ricardo Guimaraes is the son of Flavio Guimaraes and grandson of Antonio Mourao Guimaraes. 1980 is the year he began working for the family business as an office assistant until he graduated in 1988 with a Business Administration course from UNA.

Having served as the former president and businessman of Banco BMG, Ricardo Guimaraes received a city council Merit Honor diploma in 2011. The award was in recognition of the work done by Ricardo Guimaraes from 2001 to 2006 as the president of the company. In his speech, Ricardo Guimaraes said that he was humbled to have been given the position and said that Belo Horizonte is still his professional and family roots.

The ceremony was attended by many dignitaries including the Secretary of State of Government, Danilo de Castro, Municipal Secretary of Finance, Jose Afonso da Silva and President of the Legislative Assembly of Minas Gerais (ALMG), Dinis Pinheiro (PSDB) among other dignitaries. Being one of the richest and most powerful families of Minas Gerais, the family is also respected for their success in business especially in the financial sector that started way back with their grandfather of the current president.

Kenneth Griffin And Citadel LLC: Growing By Leaps And Bounds

Citadel LLC is a global hedge fund with its headquarters in Chicago and over 1,400 employees spread out in offices throughout Asia, Europe, and North America. With assets under management in excess of $26 billion, Citadel is among the largest alternative asset managers in the world. Plus Citadel is among the 3% of hedge funds which has existed for over 20 years. Founded by investment wunderkind Ken Griffin in 1990, Citadel has trading products like interest rates swaps for institutional and retail clients, equity options, and equities.

Citadel manages the assets of university endowments, pension, sovereign wealth funds, and many of the other largest institutional investors on the planet. Its group of hedge funds is among the world’s largest and most successful. It ranks second among the largest multi-strategy hedge funds worldwide. It has a strong risk management culture, state-of-the-art technology, and excellent research fundamentals. Its investment strategies include credit, fixed income, equities, quantitative strategies, and commodities.

Citadel completed a Yuan fund raising program which enabled it to give Chinese investors the opportunity to put their money in overseas hedge funds in 2014. It was the first foreign hedge fund to do so. Prior to that Citadel had outperformed the industry average for 2009 and 2010 with gains which exceeded 20%. The rest of the industry posted 5% losses on average. Citadel Securities automated its trading which produced tighter spreads and lower costs. Plus it provided its institutional and retail clients with trade execution and liquidity. Its price improvements for non-S&P and S&P 500 shares were ranked #1 by Barron’s.

The brains behind Citadel is Harvard-educated Kenneth Griffin. Griffin started trading when he created his first hedge fund as a freshman. By the time he graduated in 1989 with his degree in economics, he had created a second fund, was getting real-time trading information from a satellite dish he installed on his dorm, and had over a million dollars under management. Soon after graduation, Glenwood Partners’ founder gave Griffin a million dollars to invest. Griffin surprised him by getting a 70% return on his investment. Griffin stated Citadel in 1990 with just over $4.5 million. By 1998 the company had over $2 billion in assets.

In 2003 at age 34, Griffin had a net worth of over $650 million. By 2014 his net worth was in excess of $5 billion. Due to Griffin’s vision, risk management techniques, and bold, innovative actions, the company weathered the 2008 financial crisis and emerged stronger than ever. Griffin also made key investments in his staff. He provided his employees with personal gifts, fitness programs, free lunches and museum tours. He also created a collaborative work culture which his employees loved. In 2015 the firm was voted one of the 10 best financial services companies in which to work.

Kenneth Griffin is also a generous philanthropist. He has given away over $500 million to various charities, schools, museums, and children’s hospitals in Chicago and nationwide. He’s also the world’s most active art collector.