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I have heard 2nd hand from people in top MBA programs that T.Rowe + equivalent large mutual fund positions are often much more difficult to get than many people realize (e.g., many on this forum and others often see the world as elite HF or bust)
My understanding is that this is mainly because: (1) AUM / person is very high and (2) there's relatively low turnover at these positions, creating a lot of scarcity
Note: my comments are in regards to equity investing. Would caveat that T.Rowe + others are massive asset managers that have investment strategies in many other classes outside of equities..
T. Rowe is def well respected. The only real downside to going to T. Rowe is the location.
Agree with what everyone has said so far. It's a very good firm with very good people. Most of the people who work there are "lifers" so there are few spots open, as stated above. Their summer equity research program usually takes 3-5 MBA students and 1-2 undergrads from Harvard/Wharton caliber schools. The one downside is the location in Baltimore (headquarters), although the cost of living is a lot lower relative to NY.
think there's also very low turnover at the mid and senior levels
this can be both good and bad
good if you have been able to secure one of those spots
bad b/c lower turnover can make tougher to advance
T.Rowe is not regional...it's a huge extremely well respected place. The culture is very laid back, and comp is in line with other large AM places. As someone said, the only downside is Baltimore. That's probably the only reason I would never consider working there.
TROW is a great firm with very strong relative returns across the board in its actively managed funds. Would invest in nearly any TROW mutual fund.
Any views about the company "T Rowe Price" ? (Originally Posted: 10/31/2006)
They only recruit undergrads with BS degrees.
Otherwise its a good mutual fund company. Maybe high second tier.
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Why did this get hit with MS? It contributed and added an important idea to the convo; just because you didn't want to hear it doesn't mean you gotta wave around your shit
Didn't throw ms at this, but I disagree with most of it... T. Rowe is a great firm, very solid investors, no-nonsense culture and generally very well respected across the buyside. I don't think BlackRock/Vanguard would ever be interested in that business but there are others who would be. Comp is allegedly pretty good, and there are only a couple long-only names I can think of that are likely to be better. The only downside really is Baltimore...
Good firm, but not something you want to build a future in. With all the AM fee compression and mediocre returns even at the better shops, there's a lot of consolidation going on with the industry where the AUM is increasing, but lower amount of analysts per amount of AUM. Just look at Janus/Henderson or SoftBank/Fortress. Strong probability that a shop such as BlackRock or Vanguard takes an interest in T Row Price, buys it up and fires half the staff. After all, they've both got active management staff and will just take the better analysts. Great space 20 years ago, not a good space to go to now to build a future
Why on Earth would BlackRock, who just fired a shit ton of their active equity staff... buy T Rowe lol? Those big passive shops operate entirely differently from the classic big AUM mutual funds so a buyout would be both improbable and illogical.
The industry itself has a very small number of seats in any given year, and although there is fee compression, there will remain a need for the big active shops that have consistently outperformed benchmarks on a consistent basis (FIDO, Capital Group, T Rowe, Wellington, etc.). Like any other high finance gig, if you consistently suck you'll be asked to leave. For the people who get in, however, it's still quite lucrative and will likely boom back once the market takes a turn. Everything can't be passive and the big boys will be fine.
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