AM —> HF
Hi all,
Going to be an analyst at a large AM working on active funds (port management and research). Had a couple questions of the following.
Is it feasible for high performing AM people to move into HF positions?
If so what does that time table look like? What accomplishments should you have to make that switch?
Is it like the IBD —> PE timetable / recruitment cycle after 2 years or do you usually need more experience?
Thank you for your help!
bump
1. Yes.
2/3. No time table. It's all need based, which is only one of the frustrating parts of buy-side recruiting.
Thank you!
Do you think sell-side ER will be a better starting point than AM if the career goal is HF?
Yes it is very much possible. Seen numerous times people leave buyside Credit AM to Credit HFs or Private Debt funds so the exits are there, it’s just that so few people leave AM compared to IBD that many believe the exits aren’t there however they are if desired
This! Don't be so focused on exiting. You're at a major exit spot already. You may find as you build your career, active fund management is where you want to be. Will certainly pay a ton, less pressure than the HF fund. Make your way up to PM and you'll easily make 7 figures. What more do you need? Will you make 8 figures? Maybe. Will you make 9 figures? Probably not but who cares? Don't have the allure of the HF rock star tail wag the dog. It's very rare. Do it if you want to because you like the HF world vs the AM world but learn a lot about the AM world to gauge if it's even necessary.
Thank you for this response. I agree, I am very privileged and lucky to be in such a good spot out of undergrad (especially coming out of a non-target). Being able to work on these type of funds on such a small and cool team is a lifelong dream of mine (never was an IBD guy). I am not really focused on exiting per say but I always like to keep options in the back of my mind just incase. But completely agree.
Thank you both for your advice.
Will AM in FICC will get into HF earlier than the AM in equities?
Agree that it is very doable. It's actually how I almost wound up at a HF before careening into SEC reporting instead. They will look at the fact that you've been doing relatable analyst work (especially at an actively managed fund) and have the ambition to take your career to a higher level (you have to seek them out, they're not going to come looking for you). Also agree that it's needs based so there's no real set cycle like in other areas. Doesn't mean you can't put lines in the water and keep grinding that exp as an analyst until they cold call you one day to come in and chat about an analyst spot.
Thank you! I see what you're saying. Definitely not at that stage yet to be thinking about moving out. Was more curious if this would be an option in the long term future as I always like to map out future options.
Once again thank you for your advice/input.
Yes, as a hedge fund PM I’ve hired people from long only asset management. The sooner you make the switch the better
Are y'all hiring?
Not currently
Do you think the FICC part in AM will be better than the equities part considering the goal is HF?
Very doable but easier when you actually start generating and defending your own research/picks. Most people make the jump go from Senior Analyst at LO AM -> PM at HF.
So if the goal is HF, then the best choice would be LO AM?
People switch from HF to AM for a better WLB and more manageable culture. I would probably stay at the AM as HF are known to blow up
Isnt comp at a HF higher as you progress to senior levels ?
Or do you mind kind of outlining what comp would look like around the A3/VP1 level between a AM and HF? Thanks.
Does CFA help with this switch?
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