In slump, '06 alumni finance group thrives

Jonathan Brosterman ’06, Evan Coopersmith ’06 and Nitin Walia ’06 came together to form the firm, which has had much success since its founding in 2008 despite the poor economy.

“We create computer models to analyze relationships across financial markets, and then we trade based on those predictions,” Brosterman explained. Walia and Coopersmith did not respond to requests for comment.

So far, this strategy has reaped dividends. “We are very pleased with trading results to date,” Brosterman added in an e-mail. “Our trading strategies are designed to work in all market conditions and have been profitable since we began trading in September.”

Brosterman conceived of forming BCW in early 2008 after he worked as a Goldman Sachs mortgage trader. He explained that his experience at Goldman gave him the requisite experience to start the business.

“Goldman afforded me an opportunity to learn a lot of the intangible aspects of running and wo---rking at a business that you don’t learn at school,” he said. “A job is very different than being a student.”

Though he “found Goldman really stimulating and engaging,” Brosterman said he was interested in pursuing “something entrepreneurial.”

This means of showing this entrepreneurial spirit was inspired by his Princeton coursework, Brosterman said, noting that the course ELE 491: High-Tech Entrepreneurship, taught by professor Ed Zschau ’61, was one of the catalysts behind the founding of the finance group.

“[Zschau] quite frankly inspired me to seriously consider starting my own business,” Brosterman explained. “After that, I didn’t know what would happen, but I thought of it as a realistic possibility.”

Zschau said that he was very pleased that his lectures encouraged Brosterman to start a new venture.

“Hopefully, what he learned in the course will prove helpful building a successful fund,” Zschau noted.

Brosterman and his two partners have used techniques they learned in University classes not only for inspiration but also for their day-to-day operations.

“A lot of what our company focuses on is developing these models,” Brosterman said. “The different skill sets we learned in ORFE are in some ways directly and other ways indirectly applicable.”

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BCW plans to maintain its current focus on creating better financial models in spite of today’s economically turbulent times, Brosterman said.

“We are focusing primarily on building the best models we can to produce the best reward-to-risk ratio,” he said. “That doesn’t really change with the economic crisis.”

Though the group is looking to add a fourth member to the team, Brosterman said, BCW plans to “remain lean.”

“The current economic crisis affects our ability potentially to grow in the near term,” Brosterman explained. “When we want to raise more capital, the economic crisis will change that dynamic.”

Responding to situations like these falls solely on the founders’ shoulders, Brosterman said, adding that taking responsibility for all company decisions and outcomes can be both intimidating and rewarding.

“The autonomy is itself a major challenge and benefit,” Brosterman explained. “You’re solely responsible for having the ideas that allow you to remain in business.”