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BB IBD vs. BB ER in terms of L/S fund placement?
 

Midatlantica's picture
(Monkey, 47
 
Points)
 on 7/18/12 at 11:29am

I'm a rising junior at a target looking to (eventually) work at a hedge fund or mutual fund focusing on equities.

Obviously getting a summer internship from Fidelity or another big buy side shop would be ideal, but if that doesn't work out am I better going into BB ER or BB IBD?

Within IBD, do coverage groups place better than product groups?

Any/all advice is appreciated!

Boreed's picture

Interested.

PE
 
Points)
 on 7/18/12 at 1:05pm

Interested.

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mwgr5's picture

BB IBD definitely places

HF
(Orangutan, 299
 
Points)
 on 7/19/12 at 12:41am

BB IBD definitely places better than ER for L/S equities for 4 main reasons:
1) BB IBD viewed as more selective than ER - For whatever reason, probably supply and demand, BB IBD tends to be more difficult to get into than ER, so given the talent pool is generally greater HFs are more likely to recruit from BBs. Also, many people at HFs came from BBs and respect the analyst program and conversely generally look down on the quality of most equity research
2) BB IBD has a better head hunter network - Given headhunters can place BB IBD analysts into VC, PE, or HF there are just more headhunters working for analysts and thus more potential opportunities
3) Hedge funds generally view the modeling and analytical experience analysts get at BB IBD as superior to equity research
4) Perception that you have less pre conceived investment biases than ER and therefore can be molded into the strategy

As far as industry vs. M&A group, I would say generally it is safest to be in an M&A group as that is going to give you more modeling experience and you will be able to analyze multiple different industries. That said, every bank is different and every bank has really good industry groups too, so if you ended up at one of the really good industry groups that would be fine. Also note that your industry group generally won't force you to stay in that sector if you are working at a HF.

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