Suggested Moves On Breaking Into LO AM
Finally asking for some advice. Been trying to do as much research as possible on the topic. Need some help from you guys in the industry on what you'd suggest, see below:
Undergrad: Super non-target
Work Experience: Since I studied an unrelated field in undergrad, I can pretty much write off my first job experience of one year. Ended up getting laid off and decided I wanted transition into finance. Was unemployed for a year before getting hired onto the portfolio management side for an RIA with ~ 1 billion AUM (had a couple of connections from undergrad). Been with them for a year and a half now.
Other Things to Note: I recently passed CFA level 1 and will be starting Level 2 real soon. End goal is to be a PM.
I'm 26 and feel like time is really ticking. Some say to do the CFA, some say go to b school, and some say a combination of both. Also hear others say to go to a top program, work in IB, then transition over. Since there is so much noise, what are my viable options? If it's b school, I really should try to knock out the CFA before attending. Also get the feeling that if you don't attend b school by 29, you might as well forget it. Love to hear everybody's thoughts.
I think your best bet is to get an MBA, preferably from one of CBS, Wharton, or HBS. CBS will provide the best opportunity for transitioning into the buyside
Thanks, that'd be a wild dream. Even if I kill the GMAT, I feel like I'd be super lucky to even get Yale SOM or Tuck, given that I have a super weak undergrad alongside no brand name companies.
What’s your gpa and how non target are we talking?
depending on the quality of the LO AM it is an uphill battle but doable... i think if you target some of the boutiques and go down the RA route (as you progress along your CFA exams) it's possible that some of the smaller shops might give you a shot. If not, I've seen some ppl cross over from non investment functions to RA at some smaller shops too
I'd start networking heavily if I were you.. PM is a good dream to have but maybe start small by getting your foot in the door first and then figuring out your career from there. good luck!
I really appreciate that, thanks! I will try going down that route.
I’d suggest going super boutique if you don’t want to pay for the MBA.
-A non target with a worse GPA that went to a boutique LO AM after undergrad
Appreciate the input Chimp. When you say super boutique, you mean an AM just managing a few billion? Also, do you think it makes sense to finish the CFA rather than taking time off from it by taking the GMAT, applying to b school and trying to get in from there?
What's your current role at the billion dollar RIA you work at today?
I am going to synthesize a few experiences of people i know to provide what I think you should do (all angles are factual but compiling them for what i think you should do):
With bad grades/not semi target but not bad school academically doing similar RIA manager research that is now a buyside PM. What they did is the following: 1.) CFA; 2.) self study modeling; 3.) take cheap online courses to clean up GPA where needed for bschool/other application enhancing stuff; 4.) applied to the best "bang for prestige buck per difficult to get in" grad programs for getting on the street (think Cornell Johnson etc no shade intended); 5.) did moonshot applications to better firms in RA world where there was some edge (i.e. from texas target energy, spoke portuguese targeted brazil funds i.e. for example...find any hook); and 6.) alongside grad school once in did unpaid/low paid internships with small fund in target strategy...used those to get in low prestige LO for summer, better one for full time, another one still for PM shot etc...basically went full tilt on every angle and just took which ever opportunity presented itself
PS...had >200 related convos with people in targeted industry along the way
Thanks a mil for sharing that. Thinking I'm going to try to apply to schools in that range (Cornell, Duke, Tuck, and Yale SOM) after level 2. Although, I'd like to finish level 3 before attending. I could perhaps finish level 3 and then apply during R2 whether that'd make a huge difference or not. Definitely gave me some ideas to shoot for in the upcoming years, I appreciate it.
other than the workload pain I don't think it makes a huge diff waiting to this or that just take every step when you can put your best foot forward. i.e. if you have bad math grades do another course or will get a promotion or big extra curricular take that/let that happen before applying; make sure modeling skillset up to par before networking/applying to security selection research roles etc etc. You're basically trying to give yourself as many "quality at bats" as soon as possible to get what you want...IMO don't get too hung up on if you have 2 or 3 done bc that is unlikely to be the differentiator if you're doing all the other stuff.
Well I'm going to suggest something different. LO AM is contracting headcount right now. Getting an MBA and trying to shoe horn your way in brute force is an uphill battle, an expensive long pathway that has a high chance of not panning out. That said, other opportunities will probably come up along the way, but if your goal is to be a PM, I wouldn't try to follow a track. Already PM is a role where people have many backgrounds, but they usually didn't follow a defined track to get there. If I were in your shoes, I'd think about finding an eccentric investment niche, and become the most knowledgeable person in the world about that. Whatever that is, I cannot tell you, and why would I tell you? Some product no one cares about, or understands, but there's value if you do the work. Something that isn't cool, or maybe is controversial, but it makes money. Maybe it's something with underwater office buildings, maybe it's some secondary effect of tariffs, maybe it's property in Greenland. Figure out what it is, and then meet the people you need relationships with to do it. Also, you might be surprised, where you'd think a market is correct, but it is being operated by dumb people, or manipulated by people weaker than you'd think. Then start talking about it, pitching it, getting people interested in it. Hey it's not a recipe for a guaranteed win. But that's life on wall street. If you want a more stable ladder to climb, maybe think about law school.
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