As far as I can tell, there's an endless number of credentials one could get in the finance industry, such as the MBA, MSF, CFA, CAIA, etc. Which of these is useful for a career in the hedge fund industry? Which of these is probably not worth the time, money, and effort if you're interested in the hedge fund industry?
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CFA.
CFA is earned where an MBA is bought.
I take it your point is that the CFA is pretty valuable, but you don't see much value in an MBA?
Look at how many MBAs there are and then compare it to how many CFAs....
With passing rates below 45% on all three Levels (Level II being the hardest), the CFA is significantly more prestigious than an MBA.
An MBA from a top 8 program is much more prestigious than a CFA and certainly opens more doors. A student at a school like booth will be able to interview at a number of elite buyside firms while someone with just a CFA will have a tough time breaking in.
If you're going to get an MBA take some time to get your CFA while you're there. Its a shit ton of stuff but not impossible. Plus if you fail a level, you'll still have time to retake it before going back to work. Its only like 3500 bucks.
CFA and top tier MBA. None of the others matter. Maybe a MSQF from CMU or something like that, but primarily MBA and CFA.
The only time I have actually seen a CAIA designation was some mid level guy at an edward jones type place. I think I am going to take the exam just because I find it interesting but will never use the designation
Investment side people in my firm are about 50/50 MBA/CFA, with a few having both; one person has a CFA and a top-tier MSF. I'm the most junior person and the only one who doesn't have either; I am working on my CFA.
After looking over the CAIA material, it didn't look like something I would want to do. The curriculum seemed fairly basic compared to the CFA, especially on the quantitative side. Maybe it makes sense for a risk manager or marketer/investor relations person.
There is no such person with "only a CFA." To earn the right to use the designation one must have 48 months of acceptable work experience. Too many people pass the exams but can NEVER use the designation because they have no experience.
IMO, an MBA opens doors for a person to get the job. A CFA charter helps that same person progress through his/her career faster than peers who don't have a charter. Passing CFA exams is pretty useless unless you're already employed.
Back to the OP. To "get in" the industry, get an MBA. To further your career once you're in, get the CFA.
Buyside, you're of course right that they need acceptable work experience for full membership. However, is the bar for acceptable work experience really that high? Seems to me basically anything even remotely related to financial services or accounting can be spun to work (Many employees of the Big 4 accounting firms are full members, for example).
CFA Institute changed their requirements for job experience 5 years ago or so that made it pretty strict. The days where accounting counts as acceptable experience are over. The people you mentioned with Big 4 jobs probably got their charters before the change or that they're in the business valuations and transfer pricing group. I know that accounting is not acceptable now....neither is a computer programmer who creates financial software (I think it only counts as half)
The MBA is a necessary evil for most people looking to land their job of choice. From an investment/finance standpoint you will learn much more from the CFA program than you ever would from b school. The CAIA is gaining popularity in the marketplace. The CFA does not dive deep into Alternatives (HF, PE/VC, RE, Commodities, etc...) so it is certainly a nice compliment to have. The CFA program started over 40 years ago and I'm sure some people thought it looked like hokey designation back then. Since then the CFA has become the gold standard of finance. The CAIA will eventually catch on but certainly not to the same degree due to its limited scope.
I will eventually complete all three (CFA, CAIA, MBA). The CFA/CAIA I will complete because the material actually interests me and it is applicable to my current career. Earning both would certainly help me gain a leg up on the competition but not like an MBA. The MBA is a requirement now to advance further into the field of finance. If you want to be a broker at Edward Jones or become a FA at Merrill Lynch then you probably don't need an MBA and a GED will suffice. But, if you're looking to actually manage money, be it a HF or MF, you will almost always need that MBA nowadays unless you were a superstar trader at the age of 28.
unless you're actually smart, in which case an undergrad math/cs degree and/or an mfe/mfin is the best route to take
Is this true? It seems that many people on here think the MFE is not that useful of a degree.
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