How cooked is Portfolio Analysis
Chose a PAG opportunity for a large AM when I had another possible option with their credit research team; at the time I just went with PAG since it was more quantitative and pitched as "a fast / good way into a PM seat." For some reason I thought it was much more ideation-y than risk / portfolio attribution.
A good while after accepting the offer I'm now realizing that prospects in the role were much worse than I expected (hard to lateral into trading / HFs when you're doing risk), and that research analysts are typically more preferred for internal promotions to PM. Ironic that after doing so much DD for a variety of BS clubs, competitions, interviews etc I fail miserably at doing proper DD for the actual key choice I need to make for my career.
How cooked is this role? Is it possible to lateral out, and where do people usually go from portfolio analysis?
Based on the most helpful WSO content, your situation isn't entirely "cooked," but it does present challenges. Portfolio Analysis (PAG) roles, especially in large Asset Management (AM) firms, are often more focused on risk management, portfolio attribution, and operational aspects rather than the ideation and alpha-generation work typically associated with research or trading roles. Here's a breakdown of your concerns and potential paths forward:
1. Challenges of the Role:
2. Lateral Opportunities:
3. Steps to Improve Your Position:
4. Reflection on Career Decisions:
While the role may not align perfectly with your long-term goals, it's not a dead end. With the right strategy, you can leverage your current experience to transition into more desirable positions.
Sources: ER Career Paths, https://www.wallstreetoasis.com/forum/hedge-fund/hedge-fund-research-analyst-vs-portfolio-manager?customgpt=1, Career Prospects Advice! Where do I stand.
Not terrible, know a few on my desk who lateralled from PAG into trading/analysts role. There are certainly benefits to having that skillset that is valued on the investment side. But yea, credit research was the most optimal move if u were shooting for investing seat/PM one day
Would you say that you have to do extra years of work to lateral into a research analyst track and start from scratch? Have you seen any of the PAG experience help out for people?
A clarification - this is your FT role once you graduate?
Transitioning roles within a firm is largely about three things:
Transitioning will take time, more than you'd like. I'd say 1-3 years is not crazy - as you'd want a year or so of strong performance, to put yourself in a position to credibly apply or push for a transition across teams. You can/should also look outside - after you get at least some time in your current role.
As far as experience - it can help you if you allow it to. Ultimately - attribution of performance is everything, and you'll have a front row seat. If you can become fluent in understanding, explaining, and eventually adding insights around what worked or didn't work - that's valuable across a variety of roles. it's not ideal as you've noted, however it's not a dead end.
Been in my seat at a mid/large AM (~400B) for a few months now. In my firm it seems pretty possible and encouraged to move around. Pretty common to see laterals from even middle office to the trading/analyst seats you're more interested. Fixed income for reference.
It's absolutely cooked, and the good news is you recognized it early enough.
I've seen so many people, including me, make the same kind of mistake you have, i.e. entering a department thinking its a stepping stone to __ because of the superficial proximity to __, then finding out that it doesn't build the necessary core skills.
Then the next mistake they make is realizing it too late. Denial is a hell of a drug. You avoided that mistake.
The next mistake you could make, which I'll warn you not to make, is to rely on somehow positioning the work of the day job to better point you toward your goal. A slight steer of the ship. "I know portfolio analysis isn't the right path to PM, but maybe I can find ways to get more research-adjacent tasks into my day or reposition it on my resume."
I've seen that strategy fail every time. The answer is to heavily invest your non-work time into the goal. Do the reading/analyzing/etc necessary in your spare time to become the guy that research wants to hire. And be willing to take whatever downrank comes with it, even if that means taking an entry-level role.
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