AM to Macro hedge funds - can I get a sense check?
Seeking advice whether I'm on the right path.
Ultimately l'd like to break into a macro hedge fund in a macro research/strategy position in London (where most macro HFs are aside from NYC). Here are my credentials:
Bachelors: First class (GPA: 4.0/4.0) in BSC Economics from top 10 globally ranked London university and considered strong target university.
Past role: Two years as a macroeconomist at a macro research and consulting firm.
Current role: working as a macro analyst/strategist in an investment strategy team for a large asset management firm (one of the largest non-US AM firms)
Currently working towards my CFA charter holder.
I am told by many in my team that people get poached by macro funds with a huge paycheque after a few years. But my main worry is that I only have an undergraduate degree in economics and I feel without a masters degree it'll be an uphill battle to even get into one of mid-size funds let alone the larger ones. Secondly don't the macro funds usually prefer economists from the sell side who are looking to move to the buy side. I'm already an economist on the buy side but trying to move from AM to HF. Am I cooked?
I'm currently under the impression that if I get my masters from a target uni (will be similar to where I got my undergraduate degree in terms of educational quality, prestige, ranking, etc.) I should be in a good position to exit to a macro research/ strategy role within a macro fund but l'd love to hear some advice and opinions
Any help appreciated thank you!
Based on the most helpful WSO content, here are some insights and advice for your situation:
Industry Trends:
Educational Background:
Current Role and Experience:
CFA Charter:
Transition from AM to HF:
Networking and Applications:
Further Education:
Marketability of Skills:
In summary, you are on a solid path, but pursuing a Master's degree and enhancing your quantitative skills can improve your chances of breaking into a macro hedge fund. Networking and leveraging your current experience will also be crucial in making this transition.
Sources: I'm bored: Macro Hedge Fund PM Q&A, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions, Q&A: Head of Macro Strategy at Hedge Fund Taking Questions, Q&A: Non-Target School to Portfolio Manager at a Top Hedge Fund – 6 Years Out of Undergrad, Q&A: First year macro hedge fund analyst
I think you have a very good background for it but you’re wrong regarding them looking for economists. They look for traders who specialize in macro sensitive markets.
Most people at macro funds are from rates trading/strat seats in S&T, and given how data heavy the space is they usually have STEM backgrounds.
I’d focus on econometrics, Python/pandas, and market microstructure/greeks and you should be fine
thank you for your useful response.
I think it might be hard for me to move into S&T after being in AM now, or is this still possible?
I believe these funds have research analyst positions too right? That’s where I was more looking at given I’m less from a trading background and more from an investment strategy background. Unless I’m interpreting all of this wrong and the skills are much more interchangeable than I think.
Not on the macro side. But at my first interview with big 4 (me being very naive) I knew nothing about hedge funds and told them I wanted to do macro (had internship exp trading rates). BD said PMs are only looking for stem heavy backgrounds to be of any use in a jr associate position. PMs can come from trading rates at a bank but your best bet is a STEM masters for the pods from AM. That combined with your macro exp and career goals should set u up well for success.
Discretionary macro funds don't really care if you have a PhD or not. It is about macro intuition and market sense rather than economic theories.
Coming from a macro strategy background like myself should be suitable then I would say? I spend a lot of my time thinking about macro flows and macro narratives about the economy.
I was a rates strategist in sell side, and now working as a discretionary macro PM in a multi-manager macro fund. Just make sure you are perceived as the type of strategist that think deeply about your trade ideas / market views (to keep your job in a bank / AM sometimes the quality of trade ideas is not really important). So in a good year you will have more chance to move (i.e. 2022 when every macro fund is expanding). In difficult years funds will only laterally hire experienced PMs / sell-side traders with long track records.
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
Thank you that’s really useful.
I think id like to get my masters in economics and finance, then get a sell side role as a macro/rates/fx strategist like yourself and then move to HF.
So very similar to you but you’re of course some years ahead of me. Would love to ask more questions if you’re okay with it??
could you please repeat that one more time? I did not quite get it, thank you
Would you say this year has been difficult?
My logic is that 2023 was bad due to the regional banking crisis as well as a lot of these macro hedge funds messing up by assuming FED rates would peak at 4%.
I know a lot of these funds ended up cutting people and have this year started recouping losses. Does this mean recruitment, especially at more junior levels, will start picking up in 2025 if 2024 results are maintained?
sell-side rates strategist here as well. very interested in your experience and would really appreciate if you could pm me and let me ask a few questions!
Are there even any Discretionary Macro funds out there for juniors to recruit into? Seems impossible out of IB at least. All I get is inbounds from typical pods and some SM here and there.
"Huge paychecks" are only for money-making roles where you take risk and own your P&L. A researcher that produces mostly academic material with no skin in the game is never going to approach the comp level that a PM gets.
Put in different words, the more stress you bear, the more you can potentially get paid.
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