Key Takeaways
- • Goldman Sachs hired three new managing directors within the first week of 2018: Matthew S. Rothman (former Credit Suisse head of global quantitative equity research), Louise Singlehurst (ex-Morgan Stanley MD), and Kevin J. O'Reilly (ex-Morgan Stanley MD and Madava Group advisory director).
- • Rothman, who brings 17+ years of experience including a prior stint at Goldman as an associate starting in 2001, joins the New York office to lead quantitative equity research as the firm expands its algorithmic trading business.
- • Singlehurst, with 17 years of experience based in London, represents Goldman's strategic response to MiFID II regulatory changes that took effect in early January 2018, which increase compliance costs and pressure profit margins on equity research.
- • Goldman Sachs doubled its lateral hiring at senior levels during 2017, according to co-COO Harvey Schwartz's September 2017 presentation, signaling an accelerated strategy to recruit experienced talent from competitors.
- • Rothman's appointment reflects Goldman's focus on acquiring top quantitative equity research talent to capitalize on data-driven stock-picking strategies and algorithmic trading capabilities in a shifting regulatory environment.
Summary
Goldman Sachs initiated 2018 with three significant managing director appointments in the opening week, demonstrating the firm's intensified focus on senior-level lateral hiring. Matthew S. Rothman, formerly head of global quantitative equity research at Credit Suisse, joined Goldman's New York office, while Louise Singlehurst and Kevin J. O'Reilly, both ex-managing directors at Morgan Stanley, were also brought on board. These hires underscore Goldman's strategic pivot toward recruiting seasoned talent from Wall Street competitors.
Rothman's appointment carries particular relevance to Goldman's business priorities. With over 17 years of experience, Rothman previously led a global team of analysts at Credit Suisse (August 2016 onward) focused on developing quantitative strategies and data-driven stock selection tools for institutional clients. His return to Goldman—where he began his career as an associate in 2001—aligns with the firm's expansion of its equities algorithmic trading business. Between his first Goldman tenure and the 2018 rehire, Rothman held roles at Lehman Brothers, Barclays Capital, and Acadian Asset Management, accumulating deep expertise in quantitative finance.
Singlehurst's hiring reflects Goldman's urgent need to strengthen its equity research capabilities amid a major regulatory shift. With 17 years of experience and based in London, Singlehurst joined from Morgan Stanley, where she had worked since 2001. Her appointment is strategically timed to address challenges posed by MiFID II, the European regulatory framework that took effect on January 3, 2018. The regulation fundamentally restructures how investment firms charge for equity research, increasing compliance costs and eroding profit margins—driving competition for top-tier research talent who can generate revenue under the new model.
Goldman's acceleration of senior-level lateral hiring reflects broader industry trends and the firm's competitive positioning. Co-COO Harvey Schwartz announced in September 2017 that Goldman had doubled its lateral hiring during that year, signaling sustained commitment to acquiring external talent at managing director and equivalent levels. This strategy contrasts with traditional promotion-from-within models and indicates Goldman's willingness to pay premium compensation to fill specialized skill gaps, particularly in quantitative research and data-driven equity strategies where external hires bring established track records and client relationships.
Rothman's appointment carries particular relevance to Goldman's business priorities. With over 17 years of experience, Rothman previously led a global team of analysts at Credit Suisse (August 2016 onward) focused on developing quantitative strategies and data-driven stock selection tools for institutional clients. His return to Goldman—where he began his career as an associate in 2001—aligns with the firm's expansion of its equities algorithmic trading business. Between his first Goldman tenure and the 2018 rehire, Rothman held roles at Lehman Brothers, Barclays Capital, and Acadian Asset Management, accumulating deep expertise in quantitative finance.
Singlehurst's hiring reflects Goldman's urgent need to strengthen its equity research capabilities amid a major regulatory shift. With 17 years of experience and based in London, Singlehurst joined from Morgan Stanley, where she had worked since 2001. Her appointment is strategically timed to address challenges posed by MiFID II, the European regulatory framework that took effect on January 3, 2018. The regulation fundamentally restructures how investment firms charge for equity research, increasing compliance costs and eroding profit margins—driving competition for top-tier research talent who can generate revenue under the new model.
Goldman's acceleration of senior-level lateral hiring reflects broader industry trends and the firm's competitive positioning. Co-COO Harvey Schwartz announced in September 2017 that Goldman had doubled its lateral hiring during that year, signaling sustained commitment to acquiring external talent at managing director and equivalent levels. This strategy contrasts with traditional promotion-from-within models and indicates Goldman's willingness to pay premium compensation to fill specialized skill gaps, particularly in quantitative research and data-driven equity strategies where external hires bring established track records and client relationships.
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