I worked for 2.5 years at a LO equity asset manager with $1tn+ AUM researching companies. My performance was strong but given redundancies made in my organization and the fact that I was on a fixed-term contract my contract was not extended. A position opened up, which at the time seemed interesting, covering investment grade, high yield and leveraged loans (long, short & CDS) at another asset manager ($1tn+ AUM) known for its expertise in leveraged finance, with the job not specifying sector coverage. I secured the job, as I thought the HY and leveraged loan space would be interesting.
Coming into the job (have been here for 6 months), I was assigned the utilities sector and have only 4 names in the high yield space out of a total coverage of 50 names. I find investment grade boring and contemplating on making a move to another asset management firm, given that I don't want to become an expert in the specific sector. Talking with my manager about it he said that there is an opportunity of taking a sub-sector in another space in the future but seemed reluctant on giving me any new names in the space. Any recommendations on what to do?
Based on the WSO threads and discussions, it's clear that career transitions within asset management can be both challenging and opportunistic. Here are some recommendations for your situation:
Evaluate Your Current Role Thoroughly: Before making any moves, assess the potential long-term benefits of your current position. Even though the sector coverage isn't what you hoped for, gaining experience in investment grade and high yield could diversify your skill set. This could be beneficial in future roles, especially in a market that values versatile analysts.
Open Dialogue with Management: It seems you've started this, but continue to have open discussions with your manager about your career aspirations and see if there are upcoming opportunities to shift sectors or increase your exposure to high yield names. Express your interest in taking on more challenging assignments.
Networking Within the Firm: Sometimes opportunities come from unexpected places. Network internally to learn about potential openings or projects in other departments that align with your interests. This could also make you a more visible candidate for any upcoming roles.
Skill Enhancement: While you're contemplating your next steps, focus on enhancing your skills, particularly in areas that are growing or are more dynamic within the asset management industry. This could include quantitative analysis, ESG investing, or advanced financial modeling.
External Opportunities: Keep an eye on the job market for roles that match your interests more closely. Networking with industry peers and staying active in professional groups can provide leads on openings that align better with your career goals.
Patience and Timing: Sometimes, the right move is about timing. If your current role offers learning opportunities, it might be worth staying a bit longer while preparing for the next step. This approach can ensure you don't make a hasty decision that you might regret later.
Remember, every job can contribute to your career development in some way. Use this time to build skills and relationships that will benefit you in the long run.
Sources: Miserable in consulting, how to improve situation?, https://www.wallstreetoasis.com/forum/asset-management/will-asset-management-industry-just-wither-away?customgpt=1, Career advice needed: Acquisitions vs Asset Management, My business just blew up and I cant find work., Non-Target Undergrad to Non-Target Grad to Asset Management
What is boring about Investment Grade, asking because I'll be starting as an IG research analyst soon
Investment Grade is very high quality therefore the returns are relatively low and the businesses are as a result “boring”.
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