Just saw another topic about the Series 86 but didn't want to high jack it with a new question.
Which professional exams do most ER departments look for? I'm a candidate for the CFA level 1 this coming December because my end goal is to end in the hedge fund industry but figure if I can't get into the hedge funds ER could be the best stopping point in my path until I get more experience. Would these ER departments prefer that I had the series exams, the CFA, or is neither/both truly necessary?
For sell side ER, you're required to get the Series 7, 63, 86, and 87. You can waive out of the 86 if you passed level 2 of the CFA within some time frame prior to being required to take 86 (I think it's 3 years, but don't quote me on that one). You cannot take these in advance as you must be sponsored by your firm so don't worry about it until you get the job. Note: Some other finance jobs require you to get the Series 7 and 63, but don't go for a job just to take these exams as it's much more important building up relevant experience than just collecting worthless exams.
The CFA for whatever silly reason is viewed favorably by those in sell-side ER, AM, and some hedge funds. As you are listed as a student, it's probably not a bad way to spend your time because it's an easy and pretty cheap way to demonstrate interest in the field. I would caveat this though by noting that there is no magic degree or certification that'll help you break into ER or any hedge fund for that matter. You need to be able to demonstrate your ability to add value early on, which in this line of work means you need to be able to at a minimum, (1) structure an investment thesis, (2) build financial models, and (3) [in the case of buyside] source new ideas. If you are at a level where you can do the first two and have already done plenty of networking, then the CFA may be a good use of your time. The charter itself teaches you basically none of those three things hence my emphasis on those prior to wasting time on the CFA.
Feel free to reply or PM if you have questions. Best of luck!
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