AM Portfolio Manager career path?
(Monkey, 37
Points)
on 6/10/10 at 8:03am
So after doing my own research and reading this site I have realized the Asset management is a solid career choice. So I wanted to know what is the usual career path to become a portfolio manger at a asset management firm like Blackrock, Pimco and wellington. Also what is the salary like for a portfolio manger at these places?
Unless you know someone or
Unless you know someone or have a big enough trust fund to buy yourself into the position, no bank or AM firm is going to give you a portfolio to manage right out of college. Salary depends on AUM and the firm so for someone entry level it can be anywhere from 75-175 but typically 100k or below.
Main difference between AM
Main difference between AM and other position is bonus. It's quite smaller.
i work in AM @ JPM/GS/MS in
i work in AM @ JPM/GS/MS in their real estate investing arm. the PMs for our funds are about 50-65 years old. they each have probabyl been with the company for about 15-20 years./
--
"Those who say don't know, and those who know don't say."
You either have to start in
You either have to start in AM as an analyst and move up, get sellside experience, and/or go to a top MBA program.
Compensation can vary wildly. I imagine a PM at a place like wellington/pimco/blackrock can clear low seven-figures including bonus.
The easiest and best way to
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
"It is hard to fail, but it is worse never to have tried to succeed."
Theodore Roosevelt
Something Creative wrote: The
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
Thorough. U da man.
FutureTrader21
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
Thorough. U da man.
Sorry. This is wrong. Pre-MBA roles are typically Research Associate where you support the analysts and PMs. Post-MBA role is Analyst (direct promotion for outstanding RA's is also possible). After a number of years (5-15), you can become a PM. Breaking into the Analyst role is the actually the toughest transition point.
The top MBA programs for access to the Analyst role are (in order): H/S, W, C/C (but they will all give the serious and well-prepared candidate a good shot).
The strongest MBA candidates actually turn out to be those with prior private equity experience, valued for their fundamental due diligence/research experience, valuation skills, and typically very strong background/resume to even be coming from PE. But of course, there are lots of others that successfully make the MBA placement as well.
Comp wise: Research Associates typically don't do very well (less than banking). Analysts do well (similar-to-slightly less than banking but better lifestyle). And of course PMs can do very very well (seven-figures) with a wide distribution depending on the firm, assets, and, of course, investment performance.
ibleedexcel
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
Thorough. U da man.
Sorry. This is wrong. Pre-MBA roles are typically Research Associate where you support the analysts and PMs. Post-MBA role is Analyst (direct promotion for outstanding RA's is also possible). After a number of years (5-15), you can become a PM. Breaking into the Analyst role is the actually the toughest transition point.
The top MBA programs for access to the Analyst role are (in order): H/S, W, C/C (but they will all give the serious and well-prepared candidate a good shot).
The strongest MBA candidates actually turn out to be those with prior private equity experience, valued for their fundamental due diligence/research experience, valuation skills, and typically very strong background/resume to even be coming from PE. But of course, there are lots of others that successfully make the MBA placement as well.
Comp wise: Research Associates typically don't do very well (less than banking). Analysts do well (similar-to-slightly less than banking but better lifestyle). And of course PMs can do very very well (seven-figures) with a wide distribution depending on the firm, assets, and, of course, investment performance.
You're talking equity space. I wasn't.
"It is hard to fail, but it is worse never to have tried to succeed."
Theodore Roosevelt
Something Creative
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
Thorough. U da man.
Sorry. This is wrong. Pre-MBA roles are typically Research Associate where you support the analysts and PMs. Post-MBA role is Analyst (direct promotion for outstanding RA's is also possible). After a number of years (5-15), you can become a PM. Breaking into the Analyst role is the actually the toughest transition point.
The top MBA programs for access to the Analyst role are (in order): H/S, W, C/C (but they will all give the serious and well-prepared candidate a good shot).
The strongest MBA candidates actually turn out to be those with prior private equity experience, valued for their fundamental due diligence/research experience, valuation skills, and typically very strong background/resume to even be coming from PE. But of course, there are lots of others that successfully make the MBA placement as well.
Comp wise: Research Associates typically don't do very well (less than banking). Analysts do well (similar-to-slightly less than banking but better lifestyle). And of course PMs can do very very well (seven-figures) with a wide distribution depending on the firm, assets, and, of course, investment performance.
You're talking equity space. I wasn't.
OK... Then what were you talking?
So what is it then?
So what is it then?
ibleedexcel wrote: Something
The easiest and best way to do it is to work as an analyst level at one of these places then you go into a top MBA program (for PM's it's likely going to be Booth or MIT as the best in's), then you move into a PM role as part of their MBA recruit process. You could also start as Analyst, move to Associate, then to PM, but thats incredibly hard and very, very, few people will be able to pull it off. Comp is going to be a couple 100k in base and then bonus. Starting out you will probably only clear like 250-350k including bonus, but once you're actually PM on accounts instead of just a PM you will get a % of the AUM you manage. That's when you're clearing 7fig+
Thorough. U da man.
Sorry. This is wrong. Pre-MBA roles are typically Research Associate where you support the analysts and PMs. Post-MBA role is Analyst (direct promotion for outstanding RA's is also possible). After a number of years (5-15), you can become a PM. Breaking into the Analyst role is the actually the toughest transition point.
The top MBA programs for access to the Analyst role are (in order): H/S, W, C/C (but they will all give the serious and well-prepared candidate a good shot).
The strongest MBA candidates actually turn out to be those with prior private equity experience, valued for their fundamental due diligence/research experience, valuation skills, and typically very strong background/resume to even be coming from PE. But of course, there are lots of others that successfully make the MBA placement as well.
Comp wise: Research Associates typically don't do very well (less than banking). Analysts do well (similar-to-slightly less than banking but better lifestyle). And of course PMs can do very very well (seven-figures) with a wide distribution depending on the firm, assets, and, of course, investment performance.
You're talking equity space. I wasn't.
OK... Then what were you talking?
OP specifically mentioned pimco and blackrock. Both are fixed income heavy. Pimco for example does not really have research associates or research analysts. They have some credit analysts, but those guys are not in portfolio management. Portfolio Associates there are below the portfolio managers. Hence you do not get hired there as a research associate post mba. you will either go in as a portfolio manager or portfolio associate if you're on the PM track.
"It is hard to fail, but it is worse never to have tried to succeed."
Theodore Roosevelt
FutureTrader21 wrote: So what
So what is it then?
It's both. In equity land, the PM's are guys that have been equity analysts for awhile and then become lead strategists or pm's. Here you would be a research associate->equity analyst-> PM.
In more complex investment funds it doesn't work that way. When you're a portfolio manager focusing on derivatives, currency, fixed income, etc, you are typically not going to be an equity analyst or a research associate before because your skill set is really not relevant. You would be some type of associate or equivalent and then become a PM or come in as a PM or associate level via b-school. It's going to depend on your previous experience.
"It is hard to fail, but it is worse never to have tried to succeed."
Theodore Roosevelt
It's very difficult to
It's very difficult to generalize as people have pointed out. Some fixed income teams will have a track that looks a lot like equities, others won't. I happen to think the job is overrated, but good luck to you.
what are teh pre-requisits
what are teh pre-requisits coming out of undergrad/masters degree? What qualities do they look for?