BB AM ER vs 30B LO AM (Tier 3 City) SA Role

Based on the most helpful WSO content, here's how you can weigh your options:

1. End Goal Alignment:

   • If your ultimate goal is to land in a long/short (L/S) hedge fund or a strong long-only (LO) investing seat, the LO AM role might provide more relevant experience. LO AM roles typically train you to think like an investor, focusing on screening, capital allocation, and understanding what makes a good holding over the medium/long term. This is highly transferable to L/S investing.
   • On the other hand, BB AM ER might be better for building a recognizable brand on your resume and could open doors to hedge fund pods, especially if you excel in a specific sector.

2. City and Return Offer Concerns:

   • The Tier 3 city for the LO AM role could be a drawback if location and networking opportunities are important to you. However, if the firm is reputable and offers strong training, this could outweigh the location disadvantage.
   • The uncertainty around return offers is a valid concern. If the LO AM role doesn’t guarantee a return offer, you might need to weigh the risk of having to re-recruit versus the potential upside of gaining relevant experience.

3. Siloed Nature of ER:

   • Equity Research (ER) roles can indeed feel siloed, as they often focus on specific sectors or companies. However, this specialization can be an advantage if you’re targeting hedge fund pods that value deep expertise in a particular area.
   • If you’re concerned about being siloed, consider whether the BB AM ER role offers rotational opportunities or exposure to multiple sectors.

4. Reputation and Exit Opportunities:

   • A BB AM ER role at a recognizable name could provide broader exit opportunities, especially if you’re targeting hedge funds or other high-profile roles.
   • The LO AM role, while potentially more relevant for your end goal, might not carry the same brand recognition unless it’s at a top-tier firm.

Recommendation:

If your primary focus is on gaining the most relevant experience for L/S or LO investing, the LO AM role might be the better choice, provided the firm has a strong reputation and you’re comfortable with the Tier 3 city. However, if you value brand recognition, networking opportunities, and a more structured path to hedge fund pods, the BB AM ER role could be a safer bet.

Ultimately, consider the likelihood of a return offer, the quality of training, and how each role aligns with your long-term goals. If possible, try to gather more information about the LO AM firm’s track record with return offers and alumni placements.

Sources: Would you rather hire a junior out of IB or LO AM?, AM vs ER vs IBD, https://www.wallstreetoasis.com/forum/investment-banking/eb-vs-bb-long-term-and-exits?customgpt=1, Best Route to a fundamentally driven HF in Londob: IB vs AM?, ∎ CBRE RESEARCH BRIEF ∎ Multifamily Investment Continues to Shift Towards Tier II & Tier III Markets