Making the jump from trading -> value investing?

Hey everyone - appreciate any advice or perspective on this.

I've been working as a macro interest rate and FX derivatives trader at both a well-known BB for four years out of college (NYC), and currently at one of the largest and well-known hedge funds in the world (past year, so five years total in the market at a BB and HF). Long story short, I've always harbored a serious interest in value/fundamental investing, and am looking to make the jump from the esoteric realm of macro derivatives to deep-dive fundamental analysis shop (ideally an activist-esque fund, distressed or event-driven). I can list all the reasons, but chief among them is the ability to develop a legitimate 'edge' in discovering a dislocation in the market's valuation of a company that no one else has spotted. In the realm of macro, there is no such edge; just varying degrees of luck and economic prescience - but given the convergence of global central banking policy, everything seems like a binary bet/gambling at this point. I also really, genuinely enjoy reading about the 'stories' in financial literature that constitute some of these big, fundamental investments. The underlying chase, development and refinement of a strong thesis you swear by is something rarely seen in the macro space (unless you've got the horizon and funds to weather the storm like Soros).

So what do you think? Is there some way to make this jump, and if so, what skills would give me the most credence? As far as the quantitative/model-building rigor and horsepower, the types of models I've built in my life as a macro trader/strategist run laps around the standard DCF models an IB analyst learns (nonetheless, I'm self-learning all the important deep-dive credit analysis and cash flow models from WSO-type resources - any suggests there btw?). I spend a good deal of time reading the 50+ page commentaries/presentations by a number of activist-type funds. I have a few theses on long and short ideas. But I'm not sure if I need to ultimately go to b-school, or need to take a step back/cut in pay at an equity research gig back on the sell side.

All thoughts appreciated. Apologies for the mouthful!

 

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