What is the best way to break into AM from the Big 4??

Hello all!

I was just curious as the best way to break into AM (possibly hedge funds) down the road from the Big4. Would working at the big 4 for a few years and trying to network work? I do not want to get stuck being an "accountant" which I have read on multiple threads, if one is to stay too long in Public Accounting. Would obtaining a CFA be better than a MBA? Or possibly trying to get into ER prior? Just looking for answers and any help is appreciated!

Thanks,

 

CFA is not for a career change and it is not going to give you an opportunity to start over with OCR and build a new network...but a top business school will. Even though the CFA is usually highly regarded within AM/ER, it's more useful for people who are already working in the industry and want to advance or become more marketable/solidify their credentials.

Unless you are a networking god and you are very, very lucky, you will just be another dude at big 4/back office/middle office/whatever with a CFA who can't break out of his role (or passed level 3 but doesn't even have the relevant experience to get the charter).

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

Flake is correct.

What kind of network on the Street does your school have?

You can take CFA level 1 to show that you have an interest in the industry, etc, but don't expect it to be a silver bullet.

My recommendation would be to try to make your way into a IB/SS ER/BS ER position while having the understanding that an MBA (or even MSF, etc) will likely be your best shot.

[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA
 

My school has very little network on the street, and I have been getting into contact with those who are on the street. I do not expect it be very useful, therefore, I was relying on making it through CFA or MBA, something along those lines. I will be starting TAS this summer, and I have read that being in TAS is one of the better ways to get into finance while being in the Big 4. That is why I was looking at the CFA and trying to network from TAS to ER/AM. I have thought about the MSF, but I recently just got into Big 4 and was debating whether it was better to stay at the Big 4 and getting a few years of experience in Audit/TAS/ and CFA or doing an MBA down the road instead of going to do a MSF. I just was not sure what would be the better option. The MBA seems to be the preferred, but I was just looking at other options to forgo the expense/opportunity lost.

 

Also - my undergrad is in Finance - I just went an additional year and gained the hours for accounting for the CPA. Basically I have a dual major with Finance and accounting without the accounting bachelor, because I did it at a different school who was a top accounting undergrad after I graduated from my undergrad. Odd path I know.

 
Best Response

Here is what I would do if I were you right now and was very aggressive about achieving my goal (which is basically what Simple said):

  1. Start reaching out to alumni, any linkedin leads, family/friend contacts etc. Basically start to network aggressively from day one. If AM/research is your ultimate goal don't waste any time. Do it right because you still have your job to do at TAS that you want to keep if things don't go your way in the end.
  2. While networking, study for the CFA level 1 exam in December 2014.
  3. While networking and studying, start exploring extracurricular opportunities (whatever they may be; do some research on it) because you will need this to build a strong profile for those top 10 MBA programs.
  4. If it's February 2014, you passed the Level 1 exam but networking hasn't yielded any results still, I would start studying for Level 2 in June 2015 while still doing items 1 and 3. I would also start applying to AM/ER jobs as well to see if you can generate any interest and land a few interviews.
  5. If you pass Level 2 and things are still not looking up on the networking/applying elsewhere front, start preparing for the June 2016 Level 3 exam and STILL doing #1 and #3 and applying to other jobs.
  6. As soon as you take your June 2016 exam, start focusing on the Fall 2017 MBA applications. Shift your efforts to the GMAT, writing your essays, asking for letters of recommendation, etc. By this time you should have something on the extra curricular front if you were working on #3 for the last 2 years. You will have most of June, August, September, and probably some of October to get your MBA shit in order before the admission rounds kick in (I may be off on my admission timeline but that sounds about right).

If you're not lucky, get ready for a very stressful 2-3 years of your life. The light version of this would be to NOT do the CFA and to work in TAS, network, apply to junior AM/ER roles, and if after 3 years you haven't moved then start focusing on applying to b-schools.

Under my tutelage, you will grow from boys to men. From men into gladiators. And from gladiators into SWANSONS.
 

Flake gave you a really good breakdown/timeline. I'd add:

  1. Look to network/apply to BB/MM IBD analyst positions also. They're going to be a smaller leap than AM/ER just because of the transactional nature of the position. I'd stick to banks that have some sort of buyside recruiting history as you don't want to encounter the same problem at a boutique that you would from TAS.
  2. Literally read everything about investing you can get your hands on and start to come up with write ups / pitches. You're going to want to show people that you can walk right in and hit the ground running from day one so being able to articulate a research process / thesis / points about the market is going to be especially important for you. Apply to Value Investors Club and if you are accepted put that on your resume. It'll signal that your write ups / thought process are of a minimum quality / you're not retarded.
  3. A big part of your network should be people on the buyside or SS ER that have Big 4 backgrounds. There are probably more than you think and they can help guide you / give you sound advice.
[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA
 

It's not as easy to career switch as IB/MC, but it's possible. There are just a lot fewer seats and a lot of the people who want those seats will be coming in with previous experience, which gives them a leg up. One thing I would add to Flake's timeline then is that you should be personally researching stocks for your PA this entire time as well. Do a good in depth job on that (as if you were working at a fund) and you'll pick up a lot of knowledge that will serve you well when you start getting interviews (either before or during b-school).

 

Hey man, thanks for the response. I have/am considering B School, I just want to try and avoid studying for the CFA for 2+ years and then also doing B School afterwards.

 

At this fund, what will your responsibilities be? Will you be working on dispositions, hold/sale analyses, major capital projects, major leases, etc.?

The more of the items mentioned above you can work on, the better your "career outlook" will be. Those skills will be highly valued and can even be transferable to an acquisitions role if you ever wanted to make the switch.

In terms of a career, usually you will start by overseeing a small portfolio of properties within a geographic region. As you progress, you will oversee more and more properties and start to oversee other asset managers. Ultimately, you would be running the entire Asset Management team.

Not sure if that answers you question. Feel free to ask us more specific questions.

 

So the role is pretty open. They help organizing a couple large projects like reorganizing a significant number of contractors at properties, possible energy projects like solar, and some transactions. They mentioned possibly starting a new fund soon as well. I hope to get more into the acquisitions.

 

I made the jump from EY to a private equity shop and did well. Also hired a number of analysts from the big 4. The skills you develop on the advisory side transfer well. Feel free to get in touch. I don't have anything right now, but would be happy to talk.

 

Read my last post on this forum. http://www.wallstreetoasis.com/forums/what-to-say-to-an-md-at-a-16b-hedg...

Was just told by a PM at a megafund that ultimately "people don't make the switch from BIG4 to a hedge fund" and suggested trying to get into an I-Banking analyst program - b/c I need a bank's pedigree, not Big4, even in the Valuation group where I have modeling experience. Ultimately he said people view me as someone they have to train, and that individuals at a hedge fund are here to make money not to train people.

This was through a solid connection, and I have modeling experience and can speak intelligently about the markets.

 

From my experience, unless you have a degree in math/computer science and are trying to snag a quantitative analyst role in AM, it is almost impossible to break in right out of undergrad (at least front office).

 
wadtk:
From my experience, unless you have a degree in math/computer science and are trying to snag a quantitative analyst role in AM, it is almost impossible to break in right out of undergrad (at least front office).
I agree with you for the most part, but don't forget physics and engineering. I also know some econ and finance majors who got sales/client relations type AM jobs out of undergrad.
 

Standard degrees focused on business type things can get into AM. I know many people who did econ and work at AM. I also know english majors/history major undergrads in AM. in AM the teams, at least FO, are usually tiny so fit is most important. There just aren't many positions in all honesty though that you'd want to do.

 

I was in the Big4 in an audit role for 2 years before I was able to make the move to AM. I have a BS in Accounting and an MBA with my CPA. Being that I came from non-target the switch was tough but doable. I am now in Risk at one of the largest Asset Managers. From what I have heard, moving for TAS to any finance role is much easier than from Audit.

If I were you, don't rush. Big 4 provides enough skin thickening experience to help you stay afloat on the other side.

 

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"Even if you're on the right track, you'll get run over if you just sit there" - Will Rogers
 

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