Is a CFA helpful?

I need some advice as to if a CFA is worth it for me. Ive been in big 4 for about 5yrs, manager level, working in audit over AM and alternatives, mostly large RE and Hedge funds and some PE funds as well as some transaction services experience too

If I want to move into asset mgmt or PE would a CFA help me at all? I ve heard its pointless for IB and

thanks

 

Here's the deal... I am a HUGE fan of M&I and BIWS. But Brian's blanket dismissal of the CFA is not entirely fair. Here's why:

The CFA is not useful for the following people: kids shooting for summer internships and their first FT jobs out of college. You really cannot take the CFA in college... so it is useless for these two groups of people. I agree with Brian here.

Once you're an analyst, you do not have the time to spend studying, and the probability of passing is very close to zero. So again, Brian is right that this is not worth it.

HOWEVER... if you are working in another area (consulting, accounting, etc) or back office - the CFA is a good way to go. Passing it is no small feat, and people recognize this. It shows that you are serious about finance. You also learn some good stuff.

It is also helpful if you don't have a finance background.

 
Best Response

Refer to some of the other discussions of the Big 4, that is far more relevant for you than questions on the CFA.

It's very hard to become a front-office investment professional from the Big 4, especially from audit, even more so after 4+ years. You could likely easily get a controller/CFO/etc middle-office/back-office role (as you probably know if you've ever talked to a headhunter) but the fact is that unless you've gone out of your way to learn financial modeling or securities analysis (which seems unlikely as you're a manager who is just now asking about the CFA) you're going to have a long, hard, nigh-impossible road to become an investment professional. The CFA has its purpose (I'm pursuing it) but it won't make up for/change 5 years of professional experience in audit with no finance work experience.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

Also since you are at big 4 I would imagine your accounting skills are above par, which will help a ton on the CFA as financial statements and accounting is the biggest section of the test. (well for level 1 it is anyway)

To answer your question though, with 5 years experience at non-front office role, I would recommend CFA based on what NYorker says above.

Also most of the comments so far on this thread, I feel, are spot on.

 
fraser24gt:
Yea, so I've heard. If I were to buy some books and start studying this summer to take it in about a year (obviously not hardcore, 6 hours a day studying) what would my chances look like?

Well, if you buy some books and study for some time (no hardcore here), you will most probably pass level 1. But passing a level 1 and getting a CFA charter is a bit different - level 2 is way harder than level 1, level 3 is on par with level 2, but less technical in nature. Besides, with every year that passes, you have less and less time to study (more work/commitments etc) - and you will need at least 3 years to do the whole program (with 3 1st time passes, that is), and don't forget about 4-year work experience requirement :).

So, it will definitely be worth the effort if you do it.

 

real world experience helps but certainly isn't necessary.

CFA recommends 250-300 hours to study. You could probably study 150-200 and pass - anything less than that and I would bet against you.

 

CFA is becoming mandatory for research (both buy and sell-side); for buy-side big shops may require it before an analyst can move up to PM; for sell-side, its makes you more credible to have the letters after your name

PE not so relevant, but cant hurt

For PWM it helps as any designation would. Depends on what you do - lots of the Level III material is useful if you actual manage the clients money (as opposed to being a pure relationship guy that mainly takes people out to golf and dinner)

HF is a maybe as well - alot of the Level III risk management and portfolio mgmt material is good background, but really depends on the strategy of the fund. Level II valuation work would be used in Long/short-only or value-oriented funds

As for taking it as senior: itll definitely be a good talking point in an interview if youre really serious about it - my advice is to enjoy your time in college, you only have 4 years of it. Buy the Schweser guides if you take it

 

WeepingWillow,where did you hear that it is being mandatory for research? I know they are pushing for it, but I don't think they will push the current analysts without them or deny future analysts the prospect of growth before obtaining it?

 

I disagree with all of the comments above. Even though a CFA is more of a requisite for equity research or a buyside position, its not going to look bad while applying for a corp fin position. Anything you can do to set yourself apart is going to benefit you. I am from a non-target school. I am sitting for level I of the CFA this december. I received an offer earlier this year. Its possible.

 

I didn't mean it as a bad thing. Heck I got an offer and I'm doing the CFA.

But from a practical standpoint, the CFA is requisite as you said for those two. You have to be prepared to tell the Corp Finance/M&A interviewer why you're doing it.

Simply saying you're doing it due to trying to get their attention (as the original poster is saying) isn't going to be a good answer.

Be prepared to explain why. Show you have a plan. Show you've given it some thought and all. I didn't say it makes you look bad...although re-reading, that impression may have been gained from my post so I just want to re-state again, I'm doing the CFA as well.

 
MonkeyBusiness:
I didn't mean it as a bad thing. Heck I got an offer and I'm doing the CFA.

But from a practical standpoint, the CFA is requisite as you said for those two. You have to be prepared to tell the Corp Finance/M&A interviewer why you're doing it.

Simply saying you're doing it due to trying to get their attention (as the original poster is saying) isn't going to be a good answer.

Be prepared to explain why. Show you have a plan. Show you've given it some thought and all. I didn't say it makes you look bad...although re-reading, that impression may have been gained from my post so I just want to re-state again, I'm doing the CFA as well.

You and I are on the same wavelength. I agree 100% with all

 

bj4224--> Are you a senior...and how did you network with the Ibanks being from a non-target...Did you get an internship?

I've been looking for internships everywhere..but I dont think they have much for freshman...especially ones from non-target schools.

 

We've just recently hired an ananlyst who passed his CFA level 1 and is studying for CFA level 2. We told him that CFA is not of much use in IB and more importantly he probably won't have any time to study for level 2 once he starts work. In my opinion it never hurts having the CFA, but don't count on it to get you far within IB.

 

Depends on where you are and what field you want to get into. In Eastern Europe, the CFA is a big plus in any finance-related role. In Western countries, it is mostly only useful for hedge funds or S&T positions, however being a full charterholder is respected in any field given the huge amount of discipline required to pass the exams. As far as I know, you can take all the exams, because I am assuming you have a bachelors degree which appears to be the only requirement to start. In short, the CFA can be a helper depending on where you are and which field you want to go into. However, you probably should not sacrifice a higher GPA just for L1.

 

You can take all the exams with no work experience. You will not become a charterholder though until after 4 years of qualified work experience.

make it hard to spot the general by working like a soldier
 

Mostly useful as a supplement to relevant experience in the form of sell-side or buyside analyst work and as an alternative for people in the early/mid-levels of their career who don't want to get an MBA. The market is flooded with back-office workers, accountants, engineers, Corporate FP&A, etc who have their CFA.

There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
 

I have the CFA (it should be a noun). I honestly wouldn't waste your time. The material is not relevant to a fundamental analysis role. It's a good overview of financial topics, but the curriculum is very academic and disconnected from real world practice. Your 750 hours would be better spent looking at stocks. In 6 years, I have definitely used less than 10% of the material in a front office role, and possibly less than 5%. Horrible return on time.

 

A CFA is useful in the sense that you learn a lot and is critical for equity research and asset management roles. However, if you're not already in the field, I don't think a CFA will allow you to make the transition. I know plenty of CFA's who are stuck in jobs they don't want and are looking for something better. The CFA market is oversaturated right now; tons of people have them.

If you want to break into a field, a top MBA is the only way. Bust your butt off to get into a top program, and it will totally transform your professional career trajectory.

 

most helpful in portfolio management, institutional investing, asset management, investment consulting.

not so much for investment banking or private equity. of course it doesn't hurt but if you're going to be spending 1000 hours studying you could re direct those efforts into networking into ib which is probably a better use of your time and effort.

 

Thz for the reply. Those industries you listed are actually the ones I am targetting. I am not so much into IB and banking in general since I didnt like the culture/people etc. I am more into research and stuff. I will be doing both networking and studying since I have 16 hours day (rest for sleeping) and I cant use 16 hours for applying/networking so instead I try to use my time efficiently.

 
Aquitaine:

Wouldn't FRM be more applicable if you know you're targeting risk? Unless there are pre-reqs for FRM (not sure).

Yeah I know people in market risk who have FRM designation. For credit risk CFA may be more applicable especially if you work with fixed income.

 

CFA Level 1 - will be quite a good advantage for investment management type of role and have quite low value for banking (the only exception is when you are interviewed by the person who participates in CFA program - in this case you will be on a good count, of course)

CFA Level 2 and above - will be an advantage almost for all finance jobs; although the content is not extremely very relevant for M&A, ECM/DCM, the fact that you passed CFA Level 2 says good things about you as a learner and hard-worker.

By the way, you cannot pass CFA L2 in 12 months from today because L2 and L3 exams take place only on Junes.

 

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Disclaimer for the Kids: Any forward-looking statements are solely for informational purposes and cannot be taken as investment advice. Consult your moms before deciding where to invest.
 

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