When the "Right" Career May not be Best?
I research stocks in my free time and think a analyst job in ER or at a equity focused HF would be perfect for me. However, with active management on the decline, I just do not feel comfortable with the low job security. As an introvert, I do not feel like PE or CD are the right paths for me (too much interacting with others as opposed to analytical work) even though they are investing role. What other careers can an introvert who has a small social side excel in that are analytical and similar to HF/AM?
I think you should look into credit research either sell-side or buy-side. Sounds like buy-side potentially would fit your personality better. You’re looking at a different type of security (equity vs debt) but you are still doing thorough analysis and research in credit research roles.
I think active equity management has definitely been affected by passive trends and other new technologies, and so has active fixed income management but to a lesser extent. I think there’s still a strong case to be made that active fixed income management is worth the additional management fees.
A few thoughts:
I understand the worry of job security - I worry about it as well - but this is finance and, well, you will get fired. You will get laid off. You could very well be killing it in your group at a firm - another group sucks - and you suddenly get laid off as part of 'equitable' layoffs or whatever. It's just a part of life and especially one in finance, no matter the role.
Focus on skills and experience that you will build out. Take 'active management' as an example. There's a much larger world that doesn't involve stocks - look at fixed income, specifically a credit research analyst or similar. Maybe even a more Quant type role. Even if you get to a fund that blows, and you get 3 years - that's very marketable experience for you. And besides, you might very well jump onto a fund that kills it and you suddenly are in a great position. Seek out experience early is my advice to you effectively.
My very frank advice - that you didn't ask for on this post but you'll get it - you need to get over the introvert = job where you don't socialize. Yeah - you aren't going to be the sales guy or relationship manager who is at a conference, schmoozing clients or prospects, making cold calls, happy hours, etc. but guess what? If you are any good - you'll be trotted out to client interviews, speaking engagements, etc. If you are in research - get prepared to talk to management teams, questions on earnings calls, networking with other analysts, etc. Sure - are there Quant roles, developer roles, etc. where you basically are chained to a computer and do nothing but build models all day, fix broken ones, etc.? Sure. And if that's all you ever want - go get it! But please don't limit yourself based on the perception of roles or careers and that you aren't the center of a party.
As far as actual jobs go - you'll want to stick to the investment side of the house, probably look for 'Quant' or 'research analyst' or similar type titles. There's roles across all areas of this for you, whether it be at a PE firm, Asset Manager, Bank, HF, etc.
Which is my overall point here - not to belittle you, but to get you to challenge your premise. Don't apply for marketing, sales and/or heavy client service roles. Do realize that you are going for the most competitive of them, the inverstment related ones, and adjust accordingly. It's not just 'researching stocks' but getting into math, programming, etc.
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