Mutual Fund to Hedge Fund?

It's tough to get in, but many undergrads who join Fidelity as an associate end up jumping to hedge funds after a few years. You are competing against MBAs, so you need to know your stuff cold and want it alot.

How well does Fidelity pay, what are the hours worked like?

I think fidelity & putnam pay about 75 all in on your first year and have 2-3 yr programs.

Far more former bankers/traders in the hedge fund world than mutual fund guys. If this is your only option, sure, you can do it, but you're going to have to network/work harder to go into the world of hedge funds.

http://www.mergersandinquisitions.com/
Mergers & Inquisitions

thanks for all your posts...so is there a signficant difference in pay for an analyst/pm at a hedge fund vs. mutual fund?

I realize traders and general partners at hedge funds make big money, but what about the pms and analysts??

I don't see why you'd want to start on the buy-side. Start on the sell-side, make contacts, make more money, have options, get training, and then make your move.

Can't the fact that there are more bankers/traders in the HF world be due in large part to the fact that there are many more of them than ER buysiders looking for positions? Why is it tougher for buysiders to get a HF position? Is it because they might not be located in NYC and are away from the action?

I'm not sure if your compensation figures for Fidelity are correct. The associate I know at Fidelity makes exactly the same amount as IBankers and his bonus increases faster than banking as the year progress. Also, I think the exit ops to hedge funds would be very good.

I don't see why'd you pay an associate the same money as on the sell-side when they don't run money - it's pittance and the bottom and bling at the top, so sell-side first makes the most sense.

Dosk: do you know how many undergrads banks take vs. how many undergrads top mutual funds take?

The mutual funds are insanely hard to get into and they have great exit ops.

I agree. Banks recruit a lot more than mutual funds.
But do you mind justifying the fact that fund managers generally have significant sell side experience?
Skeptical if there's a whole lot learning opportunities working for a mutual fund.

I know two people who went to top buyside mutual funds as research associates out of undergrad. One is working at Wellington, and said he will be making somewhat more than a 1st yr banking analyst while working less hours. The other worked at fidelity for two years, again made more than a comparable banking analyst. He left after 2 years and went to a hedge fund. From what they told me, these jobs are harder to get than a banking analyst job. I think Fidelity only takes about 10 research associate interns per year, for example.

www.sharpeinvesting.com

So if your looking to work for a fundamental hf. JPM or Fidelity? OTBE - no individual examples/outliers

Murders&Executuions - it's right to be conscience of learning opportunities, and i think different buyside firms are different. the ones that have an undergrad recruiting program will provide training and there are great opportunities to learn from PMs and older analysts at the firm. At those firms, you'll find plenty of managers with no sell side experience, who started on the buyside straight out of undergrad. however, other firms that havent formalized the process may be tougher environments to learn in - not that it's impossible, but people may need to be much more self-motivated.

Yea, although it's more like 5-8 per year, not 10.

if i could swing either, i'd pick fido hands down but thats just my opinion. you'd have to be in the actual equity research department at fidelity, though, not a support role.

at the mo. Still a decent gig if you can get in at the ground floor imo.

Wellington would probably be better at the mo but their research analysts are career. ie they don't promote to PMs.