It seems venture-capital is what Larry was cut out for. As an analyst, he was rarely in his office, constantly on the go scouting out new companies and new technologies.  “I find him to be very intuitive and very capable of defining relevant fields, observing trends, and projecting where the industry is likely to go in the future,” said Henry Yuen, chief executive of Gemstar International Group Ltd., a producer of interactive-TV  hardware and programming. Larry was among the first analysts to identify interactive television as a hot investing sector. Andrew, meanwhile, is “well-informed” on the nitty-gritty that’s going on in the industry,” said Mark Greenberg, portfolio manager of Invesco Leisure Fund, a media and entertainment fund.  “That sets him apart from a lot of other guys who are out there,” he added.

   There is a common thread the brothers take to their research. “The Marcuses in general have the capacity to find that extra nugget behind a ‘buy’ and ‘sell’ “ rating said Steve Eskenazi, partner at WaldenVC and former director of new-media research at Deutche Banc Alex.Brown.

   The Marcuses have also been able to capitalize on their family ties. Recently Larry contributed to his father’s research report discussing how electronic commerce will effect the steel industry. And despite Larry’s switch to venture capital, the brothers will continue to work together, but now in a client-to-client relationship.  “Even in this job, Drew is still my brother, and we’re still going to do a lot of work together.”

  But if Larry ever takes a conventional Wall Street job again, he won’t hear the end of it. Before he made the switch to venture capital, his father mocked his son’s aversion for research by giving him an oversized pencil. The inscription: “Larry Pencil Pusher Marcus.”

Deutsche Banc Alex.Brown securities firm (Andrew in the New York office and Larry in the San Francisco). But just as a weekly media report involving both Larry and Andrew was launched, Larry did what a typical younger brother would do: He quit to work for the flashier world of venture-capital. He is now a partner at WaldenVC, a venture-capital outfit in San Francisco that focuses on new-media companies.

  “I’m really swinging for the fences in pursuing my dreams and being led more by my intuition and real

desires that chasing near term dollars,” Larry said.  His older brother still works at Alex.Browm, as co-group head of global media research, but now based in the Greenwhich office. And just as the New Economy and Old Economy corporations cross over, the brothers do. Over the past year and a half, Andrew and Larry have found themselves co-authoring research reports and holding conferences, to highlight new opportunities for old-media and new media companies.

  From the beginning, Andrew had his sights set on Wall Street, working at his father’s office during vacations in college, and quickly moving to the Street after graduation. His prowess helped put Alex.Brown on the map for broadcasting and media coverage.

  In contrast, Larry says: “I fought the pressure to become and analyst.” He held a series of jobs, ranging from advertising to running a retail computer-lab in New York.  But he was fascinated by new media and cutting-edge technology. He headed back to the West Coast and worked at the new media companies before returning to the University of California at  Berkeley for graduate school; that is where he let Paul Stephens of Robert Stephens, now a unit of FleetBoston Financial Corp., who was teaching an investment class. The meeting led to a job covering the interactive entertainment industry at the San Francisco investment bank.

  Growing up in the New York City suburb of Armonk, the brothers say they didn’t have much much of a sibling rivalry. Although these days Drew contends he is the better athlete, while giving Larry credit as the family musician.

   Despite different approaches to research, they both wanted to make it on their own. Drew went straight to the old Kidder, Peabody & Co. after college, rather than PaineWebber Group Inc., where his father worked. Larry had an offer from Alex.Brown where Drew then was, but instead went to Robertson Stephens to get his feet wet.

Marcuses Offer Sibling Street Saga

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MONDAY, JULY 24, 2000

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