UBS AG, Switzerland’s biggest bank, hired Steven Milunovich, a former analyst at Bank of America Corp., as a managing director for its U.S. research group.
Milunovich will cover information technology hardware and report to David Bleustein, head of U.S. equities research, the Zurich-based bank said today in a memo to employees. Milunovich, who was a managing director at Bank of America covering alternative energy until March, has worked for more than two decades at firms including Merrill Lynch & Co., Morgan Stanley and Salomon Brothers.
“Every once in a while the market gives you an opportunity, and when that opportunity comes, you take it,” Bleustein said yesterday in an interview. “Steve is a legend in the business.”
UBS is revamping its investment bank under Robert McCann, chief executive officer of the Americas, after a three-year slide in the firm’s U.S. market share. The company recruited Andrea Orcel, Bank of America’s top dealmaker, in March to co-head its investment bank, and has been hiring from the Charlotte, North-Carolina-based firm since Orcel’s arrival.
Milunovich was among analysts dismissed from Bank of America as the lender sought to trim expenses in its investment bank, two people with knowledge of the moves said at the time. He was inducted into the Institutional Investor hall of fame for sell-side researchers in 2011, UBS said in the statement.
The bank hired A.J. Rice last month as a managing director covering health care facilities for the U.S. research team, according to an April 9 memo obtained by Bloomberg News. Rice, who was previously at Bala Cynwyd, Pennsylvania-based Susquehanna Financial Group, also reports to Bleustein.
UBS said yesterday net income in the first quarter fell 54 percent to 827 million francs ($903.7 million) from 1.81 billion francs a year earlier, after a charge related to the company’s own debt and a 17 percent drop in revenue led to a loss at the investment bank. Profit surpassed the average estimate of 810.9 million francs in a survey of nine analysts.