Second Curve Capital is a hedge fund, managing hogsheads of cash in long-term investments on the stocks of banks and financial services. Most of the year is spent over ponderous goblets of brandies, smoking fine cigars at financiers’ gentlemen’s clubs, absorbing the exuberance and doldrums of bank CEOs and presidents.
But once a year, Second Curve takes to the streets, adding to their intelligence what it’s like on the ground as a lowly consumer. The results? From telling moments of candor:
- Mr. Brown’s favorite experience came at a Chase branch, where he opened a checking account. When a Chase employee asked where he currently did business, he said he was a Citibank customer. “I’m surprised you want to switch,” she replied, matter of factly. “I have my account at Citibank.”
To moments of surreality:
One team’s photos showed a sign in the window of a North Fork Bank branch, complete with a skull and crossbones and a message that read, “Closed: Poison.” When the team arrived at the next North Fork branch, the employees there had no idea what was happening nearby.
As Second Curve notes, “When you walk the streets and look at what’s happening, the gap between strategy and execution becomes obvious.” Gee, we could have told them that.
Get Out of That Rut and Into the Shower [NY Times] (Thanks, Mark!)