Quant SWE wanting to move switch into ER - Is MBA right for me?
Profile: 335 GRE | 3.0 GPA | CS and Econ from Canada univesity | ORM
Hi,
I recently finished applying in the MBA 2024 cycle and got into NYU Stern. My background is a software engineer on a quant team with around 4 years of experience. I'm hesitating on NYU because I think it can get me into banking, but not necessarily buyside ER either out of school or later down the line.
I want to do MBA because I want to career switch into ER or banking if it will get me to ER later down the line. I've wanted to ER since undergrad, but fell into my SWE job due to graduating during covid and taking the best offer I had. While I'm grateful for this job, I don't see myself in engineering long-term and dislike the work.
My dream school is CBS with it's value investing program. I know the program is not easy to get into, but from what I've read students can still take the classes and there's a great network at CBS.
I was talking to some folks on the buy-side and they recommended me not to do MBA and to instead write my own research and take the CFA. My concern though is that process may take years and I don't want to 'stuck' as an engineer for much longer. I plan on doing those things, but still want to pursue an MBA for the hard pivot.
Do I have a shot at CBS or is NYU good enough for my goals?
TLDR: With buyside ER as the end goal, should I go to Stern now or re-apply next year?
Based on the insights from Wall Street Oasis, transitioning from a Quantitative Software Engineering role into Equity Research (ER) is indeed a significant career pivot that requires strategic planning and leveraging educational opportunities. Your profile, with a strong GRE score, a background in Computer Science and Economics, and work experience in a quant team, provides a solid foundation for this transition. Here are several points to consider based on the context provided:
MBA as a Pivot Tool: An MBA, especially from a top program like NYU Stern, can be a powerful catalyst for career transitions. It offers not only the necessary finance and investment education but also access to a vast network of alumni and recruiters in the finance industry. This can be particularly beneficial for breaking into areas like ER or banking, where networking and pedigree can significantly impact your ability to land interviews and offers.
Specialized Programs: Your interest in Columbia Business School (CBS) due to its value investing program is well-founded. Programs that offer specialized tracks in investing can provide additional credibility and targeted skills that are highly valued in ER roles. Being part of such a program can also facilitate connections with professionals and firms that are active in the value investing space.
Alternative Routes: The advice you received about writing your own research and pursuing the CFA is also valid. These steps can demonstrate your commitment and capability in the field of investment analysis. However, as you've noted, this path may take longer and does not provide the structured networking opportunities an MBA program offers.
Evaluating NYU Stern: NYU Stern is a prestigious school with strong ties to the finance industry, including investment banking and equity research. While CBS might have a program specifically tailored to your interests, Stern also offers a robust finance curriculum and networking opportunities that can help you achieve your goals. It's important to assess the specific resources and alumni network Stern can provide in ER and banking.
Decision Making: If your ultimate goal is to transition into buy-side ER as soon as possible, starting your MBA now at Stern could accelerate your career pivot. Waiting another year to reapply to CBS might offer a chance at a program more aligned with your interests, but it also means another year not moving directly toward your goal. Consider how much value the specialized program at CBS adds to your career aspirations versus the opportunity cost of not starting your MBA now.
In conclusion, both paths have their merits. Stern provides an immediate opportunity to pivot with a strong finance program and network, while CBS offers a specialized program that aligns closely with your interests. Your decision may ultimately hinge on how you weigh the importance of specialization versus the opportunity to begin your transition into finance immediately.
Sources: Feel Trapped, Exit Opps From Sell-Side ER?, Feel Trapped, Exit Opps From Sell-Side ER?, Does everyone wants to leave Investment Banking after 2 years?, Q&A: Sell Side Equity Research to Software Engineer, Future of Equity Research - 12+ Months into MIFID II
Context: I'm currently looking to recruit for ER myself (SS ER), but I have learned a lot from an II ranked analyst from my church. This is not my first hand experience, but what I've learned from him.
You mentioned writing your own research and doing the CFA might take years, but you will have to have some experience writing your own research to learn the job and be successful in recruiting. You need to do this regardless if you choose to do the MBA or not.
The CFA is less necessary, but can definitely help in recruiting.
When researching SS analysts, I have seen people get summer ER associates roles at BB Sell Side Shops during their T10 MBAs and then getting full time offers at those, but I'm not so sure about the buyside.
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