Undergrad LO Programs: D&C vs. Welly vs. Fidelity vs. CAP
curious for thoughts how the big L/O RA programs compare. interested in comparing training/exits/visibility for analyst promote? is there a consensus tiering between these programs for undergrads interested in L/O
Based on the most helpful WSO content, here's a breakdown of the major long-only (L/O) research associate (RA) programs for undergrads:
Training:
Exits:
Visibility for Analyst Promote:
Consensus Tiering:
Each program has its strengths, so the best choice depends on your career goals and preferences for structure, mentorship, and long-term promotion opportunities.
Sources: Best PE Analyst Programs vs Opportunity Cost (top IB), Why is WSO anti-buyside out of undergrad?, Poor academic performance early on from low tier semi-target —> quant options analyst at reputable fund (story)., Breaking into buy-side equity research - my experience, T1 vs T3 asset managers
Judging based off Linkedin, Welly and Cap seem like the harder ones to get. From what I understand Capital does occasionally promotes 1 or 2 to Analyst, Fidelity does promote as well as Wellington (I don't know what percentage of the cohort but seems like a large enough amount), and D&C doesn't promote at all. From my perspective and from my research Capital Group seems to be the best (or at least the one I would prefer the most). It's a rotational program, and the firm is really top tier with the most assets, and culture seems to be the friendliest. Wellington is a close second, and if you're looking for career longevity probably the best (decent chance of getting promoted to analyst from the looks of it, and top tier firm and reputation). I like D&C from a firm perspective as they are IMO true value investors, but being essentially forced to leave with no path to coming back or promotion sucks as you immediately have to start looking for exits or getting an MBA (which they place well into). Fidelity I have less an idea about. At the end of the day, you'll be lucky to even get one offer as open positions for interns or full time (especially at the undergrad level) are declining, networking is hard (people have no incentive to talk to you, and don't really want to and have a smug attitude to them as they are under stress above a secularly declining profession and declining comp), and interview processes are long and unstructured (I had multiple phone screens and rounds of interviews of never ending which didn't happen on the sell-side). At the end of the day, these places for undergrad aren't even really good training grounds (some just outsource to the CFA as your "formal training"). If anything joining a MM HF out of undergrad is a better training ground as they have extensive resources and really want to develop home grown talent, with a focus on you understanding the way they invest and give real pitch experience and incrementally ramp you up to becoming an analyst on a desk. I would still take an LO RA position as you get the brand name, amazing corporate access, decent resources and as long as you're self driven you can definitely get a lot out of your experience. As long as you understand the nature of the profession and the position (knowing you're limited in terms of time to find another backup plan if you don't get promoted) you can move to a place where there's a lot more upward mobility and still practices LO as an investment style (or even move to a place with more stickier capital like a family office, pension fund, or SWF). It's much less about prestige (although branding never hurts) and much more about making the most out of a rare opportunity. Sorry for the ramble, but just wanted to share my ideas.
Thanks for the detailed explanation. Any thoughts on post-MBA analyst level?
Many analysts and portfolio managers from CAP. The program has been around for ~40 years. Just note that CAP is different from the research associate program. RAs at Capital don't get promoted to an analyst position unless they go get an MBA.
All of this is true. Note that it used to be called TAP until a few years ago. TAP was more focused on developing future leaders in a variety of roles in Capital while CAP is solely focused on making good analysts, so it's likely that we will see more CAP associates promoted than former TAP promotes. They are also taking fewer CAP associates with the goal of having a higher % promoted to analyst, ~3-4 per class in the US.
Yes, research associates do not have a chance to get promoted to analyst, and they also (AFAIK) do not hire RAs out of undergrad anymore. They do still have great exit ops however, it is is definitely still a good job.
Curious how is the job stability as an analyst? Is it hard to get fired
CAP is rotational (could be staffed on fixed income, equity, back/middle office) and has at least some focus on diversity hires; comment abt promotion above is correct. D&C is non-rotational and has direct staffing for equity and fixed income (separate), more limited internal promotes but do happen. All 4 are fairly small programs, maybe total 40-50 seats max.
any idea how you would peg this opportunities against each other to compare? seems that D&C ppl exit to L/S moreso but maybe a function of the non-promote?
How about Fidelity? How does it compare?
Correct me if I'm wrong probably less than 40 IMO across the 4 that are mentioned (maybe 40-50ish in all the LO community assuming you include every boutique and Mega LO). I recruited recently and they told me explicitly how many total interns (investment and non-investment teams) would be hiring. D&C was about 5-6, CAP was 10ish, Fidelity idk, and Wellington 3-4. You're very lucky to even get a final round let alone an offer now given that they don't hire out of undegrad as much as they once did. Recruiting LO is inherently a lot more selective than people realize, don't want to speculate or compare to recruiting for HF, but definitely more picky about candidates than IB since they assume you'll at least be staying for 3 years minimum at these programs.
How was the recruiting process? Are any offers out yet?
What are some of the boutique LOs?
Can anyone talk about why these firms (like a D&C or Capital Group) would even want you to get an MBA? I can't fathom how going to MBA for 2 years will make you better at your job when you come back. Wouldn't you get weaker in all the fundamental skills? I do understand how MBA can be useful for a career like PE where access to deals is highly relationship based, but how could it make you a better stock picker?
Minimally useful for anyone that has significant experience. Utility is largely as a signaling effect, and MBA requirement is most prominent at more old fashioned/stuffy shops, both publics and privates.
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