Hey guys -- given how rapidly things are shifting, curious to hear what the state of the hiring environment looks like in LO AM at the analyst / portfolio manager levels?
I'll start with what I'm seeing -- my firm finally stabilized I'd say as of late 2023 and with AUM creeping up since then at a snail's pace. Firm is still looking to rationalize expenses -- but not necessarily let go of I-team staff -- and is back-filling seats. However, we are certainly not anywhere near a return to growth mode and given rough performance I don't foresee this changing over the next 12 months
More broadly on job postings, seeing much more on this front in 2024 YTD vs. 2023 which in turn is better than 2022. I think hiring is still quite dampened relative to a typical bull market (think 2015-2019).
Question is -- do you think there will be a return to actual growth in 2025? Feels like after the bear market and the rate cuts (which we'll see more of by end of year) it's supportive of the bull market, but there's also some arguments that some firms may also be waiting for election results -- i.e. until the uncertainty more broadly lessens -- before returning to growth. Any thoughts?
Based on the most helpful WSO content, here's what you need to know about the hiring environment in LO equities and expectations for 2025:
Current State of Hiring Environment in LO Equities:
Expectations for 2025:
Key Considerations:
In summary, while there is some optimism for growth in 2025, firms are likely to remain cautious and may wait for more stable market and political conditions before significantly ramping up hiring.
Sources: Predictions for IB business for 22-23, What is the bull case on the S&P 500 right now??, Resurgence of Equity L/S in 2023, CRE’s Brave New World, Money Market Fun | The Daily Peel | 3/27/23
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It's a shrinking industry so the question is more about the pace of headcount reduction. The direction of travel has been clear for a while.
That's fair, but don't LO analysts have relatively good job security? I'm talking about analysts who already have a seat and not people trying to break into the industry. Like once you build up your own coverage it's highly unlikely top LO firms cut you unless you really fk it up
Would argue the difference between a 33 year old analyst and a 43 year old analyst is far less than the likely difference in comp expectations. Would also argue down with road you may only need 1 for every 2 of those analysts you needed before so...
Have no idea what you mean by your first sentence. Could you elaborate?
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