Early career insurance AM - should I just thug it out?
Joined large insurance asset manager out of non-target undergrad, LO fixed income; and enjoy the work, low stress, and my seniors are incredibly smart and have the typical high finance pedigree. However, the pay is not great and the location is not as exciting (lame, but I want to move to NYC like many young people). Have been trying to look and network into roles in S&T (which I also think would fit my interests in investing better) and other asset managers, but haven't been getting much traction. The pay eventually gets good, and it's a doable reverse commute, should I just shut up and grind? I have a pipe dream of working at a HF one day, and seeing all my friends in banking blow out my comp and live in NYC does suck a bit (even if I think my work is more interesting). Anyone start in a similar role and move? Interested in just seeing what options are out there.
Based on the most helpful WSO content, your situation is not uncommon, and there are a few key points to consider:
Insurance Asset Management as a Stepping Stone: While insurance AM may not have the allure of NYC or the pay of banking, it offers a solid foundation in fixed income and portfolio management. These skills are valuable and transferable, especially if you aim to pivot into other areas like S&T, hedge funds, or even broader asset management roles. Many professionals have successfully transitioned from insurance AM to more dynamic roles by leveraging their expertise in fixed income.
Networking and Skill Development: If you're not gaining traction in your job search, it might be worth revisiting your networking strategy. Focus on building relationships with professionals in S&T or hedge funds, particularly those with similar backgrounds. Additionally, consider enhancing your skill set with certifications like the CFA, which is highly regarded in AM and HF circles.
NYC and Compensation: It's natural to feel the pull of NYC and the higher comp in banking, but remember that lifestyle and job satisfaction matter too. Your current role offers low stress and exposure to smart colleagues, which can be a rare combination in high finance. If you’re set on NYC, keep networking and applying, but don’t discount the value of grinding it out for a few years to build a strong resume.
Hedge Fund Aspirations: Breaking into a hedge fund often requires a combination of technical skills, a strong network, and relevant experience. Your fixed income background could be a niche strength, especially for credit-focused funds. However, transitioning to a hedge fund might require an intermediate step, such as moving to a more traditional asset manager or S&T role first.
Perspective: Comparing yourself to friends in banking can be demoralizing, but remember that career paths in finance are diverse. Banking offers higher initial comp but often comes with grueling hours and burnout risks. Your current role might provide a more sustainable path to long-term success.
In summary, while it’s tempting to make a drastic move, grinding it out in your current role for a few years could position you well for future opportunities. Simultaneously, keep networking, refining your skills, and exploring options to ensure you’re ready when the right opportunity arises.
Sources: Fork in the road: Career path in Asset Management, Top 10 Undergrad, Top 10 MBA... Unemployed 3 months, 2 not great offers to decide between, Exit opps from AM?, Life decisions...buy-side equity analyst, https://www.wallstreetoasis.com/forum/asset-management/will-asset-management-industry-just-wither-away?customgpt=1
What is your specific role today - is it part of the investment team as an analyst or something similar?
If you like the work and are getting meaningful experience - your best option may be to stick it out for a few years while you continue to network and/or apply for other roles you like. I have a good guess as to where you are at - you should have plenty of options in the LO AM Insurance space with better locations - northeast and/or Chicago come to mind - there's only so many players in that space and you'd have immediately relevant experience after a few years.
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