Looking for some clarity on this - was reading Rich Toad substack and and he said its rumored that allocators check off boxes of allocating to long-only portfolio managers who have a CFA? Anyone ever heard or this or seen anything like this? If its true, seems absurd and furthers my disdain for the industry's obsession with marketing vs actual performance.
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I have no doubt that some allocators do have that rule but I wouldn’t make a blanket statement about all allocators. Certainly nowhere I have worked has had that rule.
CFAs and or YL MBAs.
YL?
Ivy.
Some might have that as a hard and fast rule (alongside MBAs) but mostly it’s a ‘soft rule’
net effect is largely still the same though
Heard from one manager that some allocators ask them to report the % of their team that has a CFA, so it probably is a factor for at least some people. (This is secondhand & anecdotal, so take from it what you will. Context was me asking if I should pursue the designation.)
Most allocators did the CFA hoping to land an actual research/investing role with a fund but didn't get one. So they tend to have CFA requirements to keep the false "prestige" of the CFA alive instead of admitting they wasted their time.
I’m an LP with a CFA and literally no one I work with has ever mentioned or cared about a GP having it
No this is not accurate. A CFA lends some credibility. A lot of allocators do have the CFA and are respectful of the effort and discipline it takes to earn one and that may inch you up a bit, but if you're successful enough to be thinking about raising money from allocators, I think you probably have sufficient credentials and track record, whether or not including a CFA, that this would not be a top concern.
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