Admitted to CBS... Should I pursue the buy-side?
Starting school this Fall, background is in ER. Dream career is working at a value oriented HF or traditional asset manager. Not as interested in the multi-manager platforms since I wouldn't have pursued an MBA.
Beyond even obtaining a role post-MBA , there is the concern of being irrelevant as a fundamental equity analyst in 15+ years. The industry is obviously changing, and tbh does the world really need another person determining the right P/E multiple for Target?
All that said, I enjoy the investment process and the job's lifestyle compared to other roles. I see it more as a craft that I can develop over my life, rather than a means to earning a paycheck.
Hypothetically - let's say I had a choice between MBB or a solid buy-side role. What would you recommend I take. Nothing intrinsically draws me to consulting outside prestige and exit opps.
If the right choice is MBB, then I won't finish up the CFA and instead of focusing on pitching stocks I'll work on casing instead.
@models_and_bottles" , @jankynoname" , @West Coast Analyst"
The industry is declining so it's not a career I would recommend pursuing today if you're heading to a top MBA program, which incidentally provides the best career reset opportunity you will have in your life.
This isn't a 15+ year issue, it's happening today. Net flows have been massively out of active products into passive over the past 2-3 years, and that trend is only accelerating. This has negative implications for comp, lifestyle, and job security. The days of being an analyst at a long only fund and collecting huge paychecks with a relaxed lifestyle are over in my opinion. I can't tell you how many sell-side ER people I know that have been let go and the buy side is starting to see it as well. There will be pockets of success / firms doing well but the trend is clear.
If you're not drawn to consulting then consider other careers. I'm not sure why you framed it as a binary decision between buy side and MBB. There are huge variety of career opportunities out there especially at a top MBA program, don't limit yourself.
Well it is certainly an industry in decline, but if you enjoy investing and get into a good mutual fund, overall its a better gig than being a consultant or working in biz development at a tech company.
And if you are good at what you do and get into a good hedge fund, its still a great career I would say.
You would be well poised to recruit for MBB, clearly, but I don't think you would enjoy it if you're only focusing on prestige and exit opps. The work is relatively unique, and you will probably not enjoy a couple years there unless you can find a nice niche that reflects your interests (potentially FS or corporate finance projects).
CBS offers you a great platform to explore new opportunities within and outside finance, that's what I would focus on.
Do you think investing needs a lot of natural talent that can't be compensated through hard work?
Great comment. What type of Hedge Funds do you see succeeding in the future? Is there a future for non-quant hedge funds? Where is the highest upside? Quant Or L/S Equity Space? Which role is easier to maintain? Where is it easier to become a PM? Your views on the longevity of each role in the next 10/20 years?
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