Less ideal job at a higher pay/level?
I have been working as a quant research associate in a two year program at a top asset manager after graduating from a target as a physics major. The program ends in a few days and I was offered an associate analyst position either in quant FI research or fundamental equity research. I was set to start as a quant FI researcher at the associate analyst level.
Out of nowhere, I am offered an AVP position by the investment risk group as an investment risk modeling analyst. I was told that if I were to take that position, I will be on an accelerated track to make VP when I receive my CFA charter in another 2 years. I am told that the target comp for my first year as AVP is 180-200K all in, which is a big jump from what I have been making and will make as an associate analyst in research.
My main concern is that while investment risk modeling group is part of the front office investment staff, it is obviously a more "pigeonholing" position and obviously researchers are more of the top dog of an AM firm after PM, as opposed to investment risk guys. Is the higher position and accelerated track worth the incremental downside? I need to make the decision before Tuesday so please help me.
I'd do it. Sounds like a great opportunity. Who wouldn't want to be a VP that young?
I think I'd take it if the firm is legit and going to stick around for another 20-30 years. More to life than getting your most ideal job.
Risk modeling is generally middle-office, even if it's being sold as otherwise. Even if your group sells risk-management services to 3rd party clients, you're making money for the firm but serving as an outsourced cost-center for another company. The AVP title at a young age is another sign of middle/back office-does the AVP title exist in research? Risk management can be a fine career path and pay well etc. but your opportunities to be an investment decision-maker (if that's your goal) will be much better an analyst in research.
AVP exist in research as well. Generally the more experienced junior analyst and the less experience full analyst = AVP, and the more experienced full analyst and senior analyst = VP
The group does not sell risk service, I think you are thinking something like blackrock PAG.
The investment risk modeling group is a asset allocation strats and attribution people. .
Sounds like it could be a cool opportunity, not trying to knock it-the AVP thing is common at banks in back/mid-office roles. Does anyone ever move from the risk group to other groups? I'd be concerned that, as you noted, the risk label might pigeonhole you.
Thanks a lot. I will ask around and get more information.
I disagree with Kenny, and I know exactly why he has a different point of view. I notice that Kenny's industry is listed as HF. HF focuses on absolute return. They are more flexible on risk and the mantra is more like "as long as the risk is limited to _____ , everything is ok". A risk professional at a hedge fund is more about monitoring the risk to ensure it stays within an acceptable level, making it more of a middle office position, similar to the role of a market risk guy at a bank.
However, traditional AMs are more focused on the relative return given a certain (very limited) risk and obviously market conditions. This makes the investment risk people much more involved in the investment decision process. You can't construct a portfolio without the risk component, because your return should be relative to risk. In fact, from the information you added, it seems like that's exactly what you will be doing, participating in the portfolio construction process by giving input from the overall portfolio risk perspective. At my firm, two high level investment risk guys are ex-PMs
There are a few reasons I think you should take this position 1. The pay is approximately the same as research at a given level, and you will join at a higher level with an accelerated path, which puts you in a higher income trajectory. 2. You will have less of a chance of making PM, but does the opportunity to make PM really worth the lost income? Do remember that most research analyst that want to transition into PM actually fails. 3. If you ever want to get back into research or lateral into a PM track, making VP at a young age in a quasi-front office at worst group would definitely help you stand out and get into a TOP TOP MBA program. After that, with a top MBA, a CFA charter, and very relevant experience, you will not have any problems switching path
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