Landscape of AM/ER Shops right out of undergrad?

Based on the most helpful WSO content, here's what you need to know about breaking into Asset Management (AM) and Equity Research (ER) right out of undergrad:

Breaking into Asset Management and Equity Research

1. Application Strategy:

   • Equity Research at Banks: Apply to equity research roles at every bank. This is a common path and banks often have structured programs for undergraduates.
   • Asset Management at Banks: Banks like Goldman Sachs and JP Morgan have solid asset management arms. These divisions are often separated from Private Wealth Management (PWM) at banks like UBS and JP Morgan.

2. Pure-Play Asset Managers:

   • Firms to Consider: PIMCO, GAMCO, Fidelity, Wellington, T. Rowe, etc.
   • Undergraduate Opportunities: Many of these firms have junior internship programs and are open to hiring undergraduates. Applying directly from undergrad is a viable path, and some firms also accept rising seniors.

3. Targeting Your Search:

   • Demonstrate Passion: Clearly demonstrate your passion for investing. This is crucial for getting consideration for asset management jobs out of undergrad.
   • Internships: Look for internship opportunities at major asset managers. This is often the best shot at directly entering the space.
   • Networking: Build relationships with advisors and professionals in the field. This can help you understand the business and identify talent/resource gaps.

4. Comparing Banks and Pure-Play Asset Managers:

   • Goldman Sachs vs. JP Morgan: Both have strong asset management divisions. Research their specific programs and culture to see which aligns better with your career goals.
   • Pure-Play Firms: These firms focus solely on asset management and may offer a different experience compared to bank-affiliated asset management divisions.

5. Books to Cultivate Investing Savvy:

   • Intelligent Investor by Ben Graham
   • Margin of Safety by Seth Klarman

Additional Tips:

• Geography: Asset management isn't exclusive to major cities. There are opportunities in various locations, including those with a view of the beach.
• Exit Opportunities: After gaining experience, you can either pursue an MBA and CFA to move to a larger fund or transition to a hedge fund.

By following these steps and focusing on demonstrating your passion for investing, you can effectively target asset management and equity research roles right out of undergrad.

Sources: Why Work in Asset Management?, Asset Management vs Investment Banking 101, How competitive is it to get asset management out of undergrad?, Stepping Stones to Asset Management, https://www.wallstreetoasis.com/forum/asset-management/could-use-some-insight-on-careers-in-asset-management?customgpt=1