AM to HF advice
I have about 3 years of work experience, 2 on the sell side and 1 in AM. I have a generalist focus. I’m wanting to make the move to a HF, preferably SM HF. I like the long term focus of long only funds but don’t like the fact that you’re benchmarking and honestly not that great at generating alpha (slow execution, regulatory constraints, no shorting, “required” exposure to stocks that are in the benchmark, and so on).
Is the smart move for me to wait a little bit and apply to senior analyst roles or is it better to try to jump ship as soon as possible?
Based on the most helpful WSO content, here are some insights for your situation:
Timing Your Move:
Building Skills:
Avoiding Job Hopping:
Networking and Preparation:
Long-Term Focus:
In summary, it's generally smarter to wait a bit longer, build your skills, and avoid job hopping. Start preparing and networking early, and aim for a strategic move to a single manager hedge fund when you have a stronger track record.
Sources: Life decisions...buy-side equity analyst, When to jump - Advice on switching jobs, careers, and fields, Q&A: Former Long/Short Research Analyst at Top HF -> VP of Growth Equities at BB, I'm a Senior Sell-Side Research Associate, Q&A, No deal experience after 3 years
You should get an equity research associate position and then recruit to HF. Hope that helps.
Why move back to the sell side? I am getting some interviews but mostly for more junior positions which almost feel like a step down. Would that be any different from the sell side?
I am sure you are intelligent. But sometimes you have to take a step down, to go two steps up. It is hard to be a generalist, specialize in a sector with a well ranked analyst, then recruit to a HF - it's easier. You will already have the investing experience, specialization in a sector, etc. Good luck.
Jump as soon as possible, even if you have more experience, you would likely still have to jump into a junior role at a HF as they will want to retrain you. I've seen AM analysts with 10+ years of experience jump into junior roles at top HFs.
This. Most HFs will assign zero or even negative value to you spending an extra 5 years at a LO. So get over your focus on titles, and make the transition asap. And again, forget about titles. What matters at a HF is your ability to make money.
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