How to move over to asset management from trading? - Need some career advice, Thanks!

Hey!

So I'm 3.5 years out of college and would like to decide on a career path to focus on for the rest of my life. I currently work at a mid-tier prop shop (not top like IMC/Optiver/Jump) etc... and obviously, working at a mid-tier shop isn't as fun as working at a top one.

While my dream was to become a trader, I'm finding it harder and harder to accomplish that goal as I get older (mainly because firms like to recruit college grads and I'm not established enough to hop on over as a trader), and so I'm considering going with my back up plan of becoming a PM. I should have my CFA by this June (taking Level III). I've already taken the GMAT so an MBA may be an option although realistically speaking, I would prefer not to go now (not enough cash). I have a solid resume sans college GPA.

The only problem with moving over to Asset Management is I've never really been a fundamental investor, and so telling myself that's something I am interested in, and subsequently learning the required skills, will be tough. That pretty much prevents me from going to a lot of firms (especially mutual funds). I've always been more interested in quantitative, macro, arbitrage, or some other type of strategy that isn't solely focused on analyzing company financials and stock picking. So working for, say, a large cap growth fund would not be something that really interests me. I would not mind doing some fundamental research or credit analysis but I just don't see myself as a full time equity analyst. I love working with derivatives by the way - that's probably my passion in finance - so I could work at a long only shop but work more with derivatives. Granted, if the end goal is to become a PM, I'd probably still need to learn how to perform fundamental analysis if I work a long only firm...

Anyways, I would like your thoughts on the following:

1) I would only go to business school if I get into a top 5 or so B-School. I feel I have the resume to get in except for a low undergraduate GPA. I feel this would be the easiest way for me to transition careers. What are your thoughts about doing this as opposed to just trying to hop over to asset management. Do you think B-school is a good move? Also going to B-school might allow me to hop over to a top prop shop. (I'm going to make one more push to get into a top shop this recruiting cycle before I fully commit with plan B)

2) As I'm not a fundamental investor at heart, what kind of asset management firms do you think would be a good fit? I don't plan on getting a PhD so a pure quant shop is out of the question. What type of role could I look for? I would love to use my experience in derivatives somewhere.

3) Any additional skills I should build before trying to move over to Asset Management? I should have my CFA designation by this June.

4) Is my plan B, which is hoping over to Asset Management, a realistic goal, given that I'm a few years removed from college and my interests don't really lie with fundamental investing? Or should I go with plan C which is just work with derivatives at some top firm.

Thanks for the input!

 
Best Response

Your story sounds very simliar to mine. if you'd like we can jump on a call to discuss, send me a PM. I traded IR derivs for 3.5 years then switched to a fund manager. I had to start at the bottom again, but since i was only 25 i didn't mind, especially since I wanted something a lot more stable and career progression. you're going to make less money than if you continued on to trading, but quality of life is a TON better. better hours, less stress to produce each day. sure, there are some nights (maybe 1-2 /quarter where I have to put in 13-14 hours days, but it's really not a big deal in long run.

I've learned a TON about other asset classes within Fixed Income and have made a ton of contacts. Also the company cares about your development instead of just what your # is at the end of each month.

CFA will definitely help.

 

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