Despite the economic downturn, some people still see hope.
Marc Lasry, the Chairman, CEO and a founding partner of Avenue Capital Group, spoke at Claudia Cohen Hall last night about surviving in today's volatile financial market.
According to Forbes, Lasry is one of the 400 richest Americans and a pioneer in the field of distressed investing - buying securities of firms near bankruptcy, reorganizing the firms and reselling them for higher prices.
Lasry began by describing his path from a college student majoring in history to one of the creators of Avenue Capital Group.
He said he had "never thought about being involved in investment sector," adding that he was "just good at numbers."
Lasry worked at a law firm for about two years after graduating from law school and then managed capital at several companies in the investment sector.
Finally, Lasry decided to manage his own money.
He created Avenue Capital Group with his sister, Sonia Gardner, in 1995. Since then, the two have expanded the company to a capital of $20.5 billion and 300 employees.
Although many investment firms - such as Merill Lynch and Goldman Sachs - have gone out of business as a result of the current financial climate, Lasry maintains an optimistic viewpoint.
Now is the best time to go out and buy equities, he said, especially in the distressed investing sector.
Lasry added that despite the crisis, he believes banks will soon lead the country out of recession.
"Government bailout will bring inflation with higher value in this deflationary situation," he said.
Lasry advised students to be aggressive when job-hunting in the current economic climate.
"You should separate yourself from others, be out of the box and send resumes not only to human resources but also to the portfolio manager," he said. "Firms seek a person who will make a difference and help them to make money."
Mark Meras, a second-year Wharton MBA student who worked in the distressed hedge fund last semester, said he enjoyed the lecture.
"Lasry is a smart guy," he said, adding that Lasry "was honest, which is surprisingly rare."
