West Coast Buy-Side (ex-Analyst) Survivor
I know this board's BB&IB-centric, but I like that they've devoted a whole section to Asset Management.
I spent 2 years at a small (~$2B AUM) firm in LA after graduating from a target school. Being the sole analyst, I did everything from pitchbooks (shockingly), to RFPs, to portofolio analysis and modeling, to making sure the 2 MD's and lone trader were happy 24-7.
If you have any questions about the industry, culture of other AM firms (I've probably talked to people in dozens of other AM firms), and general questions, I'm more than happy to share any wisdom or at least how to make sure you don't F things up.
I will say 2 things: (1) being in front of the Founder/MD at all times was a tremendous learning experience and (2) it is tough to justify a long-term career in the industry (for specific reasons).
Why is it tough to justify a
Why is it tough to justify a long-term career in the industry? (you set that one up)
CDNmonkey
True. Remember that I'm not talking about HF's or BB's here, just FI/Equities Asset Mgrs (which get 50-200 bps on AUM, rain or shine).
As an analyst for small-to-mid firms, you'll get your base + 10-30% bonus at the end of the year and work 40-60 hours/week (pretty sweet deal so far). Unless you get on track to become a portfolio manager (which may take another 5-10 years), you will not be getting the 6-figure base + fat bonus/equity because it's very easy to fall into Ops ("oh yeah, I'll just help clear some trades for a few weeks" then blam! you've been doing it for 20 years), Originations ("I get a sweet base but I travel 40 weeks a year doing my pitch to CEOs in Wichita"), or Compliance (God forbid).
Ideally, you may want to start off in AM, sample other industries, and if you really like AM, come back a few years later (post MBA) as Asst. Port. Mgr. or Port. Mgr. and get ready to lead a comfortable life (provided you beat the benchmark). Then again, there's a lot more money in IB or some variant of Finance. AM seemed passive (to me) sometimes.
Hope this clarifies things.
I personally like the idea
I personally like the idea of asset management, but you need to understand what you are getting into. I like not having to work crazy hours, while doing reasonably well.
You just need to be able to bring in some cash.
The hours far exceed what
The hours far exceed what you have outlined when you include research hours and the amount of time stressing out over your returns (although for many people this is a hobby anway). Portfolio management is a 24/7 365 day job, as the market moves on news and news is in constant flux. Thanks for the insight.
Large Asset Managers
What about the larger AMs of the bunch?
How does the pay and experience of firms like PIMCO, Western Asset, TCW, BlackRock compare to similar roles on Wall Street?
Quote:True. Remember that
True. Remember that I'm not talking about HF's or BB's here, just FI/Equities Asset Mgrs (which get 50-200 bps on AUM, rain or shine).
I hope you meant 500-2000bps because who cant get 200bps in rain or shine?
Think he ment 50-200 bps in
Think he ment 50-200 bps in management fees, not returns.
That would make sense, and I
That would make sense, and I hope so....whewwwwwwwwwwwww
Responses
junkbondswap - "The hours far exceed what you have outlined when you include research hours and the amount of time stressing out over your returns"
True, but as an analyst, you don't get paid to worry about returns, PM's do.
bankrupt_fool - "How does the pay and experience of firms..."
Larger firms like those you mentioned compare well to Wall Street (obviously not IB division, but AM), which means that your money will go a lot further in LA than in NYC. In large firms, you're still making your base + bonus but end up having a very specific role in Ops, Acct. Mgmt., or Presentations. In smaller, firms, you're doing at least 2 of those if not all 3.
tbroker - I did mean Mgmt. Fees. AM folk (to an extent) envy HF's 2/20 structure. Then again, AM PMs are not risking the house with every trade (beating the benchmark vs. absolute returns).
Responses
junkbondswap - "The hours far exceed what you have outlined when you include research hours and the amount of time stressing out over your returns"
True, but as an analyst, you don't get paid to worry about returns, PM's do.
bankrupt_fool - "How does the pay and experience of firms..."
Larger firms like those you mentioned compare well to Wall Street (obviously not IB division, but AM), which means that your money will go a lot further in LA than in NYC. In large firms, you're still making your base + bonus but end up having a very specific role in Ops, Acct. Mgmt., or Presentations. In smaller, firms, you're doing at least 2 of those if not all 3.
tbroker - I did mean Mgmt. Fees. AM folk (to an extent) envy HF's 2/20 structure. Then again, AM PMs are not risking the house with every trade (beating the benchmark vs. absolute returns).
Responses
junkbondswap - "The hours far exceed what you have outlined when you include research hours and the amount of time stressing out over your returns"
True, but as an analyst, you don't get paid to worry about returns, PM's do.
bankrupt_fool - "How does the pay and experience of firms..."
Larger firms like those you mentioned compare well to Wall Street (obviously not IB division, but AM), which means that your money will go a lot further in LA than in NYC. In large firms, you're still making your base + bonus but end up having a very specific role in Ops, Acct. Mgmt., or Presentations. In smaller, firms, you're doing at least 2 of those if not all 3.
tbroker - I did mean Mgmt. Fees. AM folk (to an extent) envy HF's 2/20 structure. Then again, AM PMs are not risking the house with every trade (beating the benchmark vs. absolute returns).
How is acct. mgmt? Is it
How is acct. mgmt? Is it considered front office or back office? Any insight into it (compensation structure/experience of ppl who do it/career path)?
I was approached for a position in it a while back but I decided not to interview since I was worried about getting stuck in a non-investing, non-markets type job. It seems like a lot of the tasks for a jr person involved putting together reports & doing RFPs (mundane tasks that I think would drive a smart person crazy quickly).
Train
Acct. Mgmt. - You'll never see a prospect but you will be doing a lot of analysis and reports on existing accounts based on data that's spit out for you (you probably won't be face-to-face unless you're somewhat senior). You can probably lateral to Business Development (front) or do Ops or research (back).
Putting together RFPs can be mundane, yes, but is the only other way the manager gets new money to invest (the other one is to have existing clients give you more). I personally hated doing them because they were never the same but managed to ask exactly the same questions and varied in length (anywhere from 5 to 150 pages).
Bottom line - if you're looking for a way in (and lateral within a year), do it. Intelligence and ambition usually get you somewhere fast (regardless of industry).
so what's the difference
so what's the difference between all the different types of management? from asset, to private wealth, to investment management. I'm still a little confused. What do you do different than say a financial advisor at a Merrill Lynch brokerage?
Real simple
Asset/Investment Management (what I did) - Company invests institutional money on a portfolio of stocks/bonds/alternatives and all you're doing is trying to beat your benchmark (S&P 500, Lehman Aggregate, some Alt Index).
Private Wealth - You're offering investment services that cater exclusively to high net worth individuals and their families. You're probably also giving them investment advice and some mix of banking products.
Brokerage - Stock jockey. You're on the phone all day cold-calling and pitching the stock du jour. You make money based on what you sell.
Hope this clears this up.
For an Asset Managers what
Entry Level?
I've seen that a lot of the
So are there generally exit
Thanks.
I work for Keyser Soze
.
What's the exit-op like at
Research
Depends
So working in AM divisions
hi
OPs?
Well, from experience
Stuck.
The struggle itself toward the heights is enough to fill a man's heart.
-Camus
Well...
i will be intern with GS PWM
No
cdo comliance
Not sure what the question is, spelling's all jacked up.
So what have you heard about
TCW