So I'll be interning in a L/S HF that focuses on both fundamental analysis and trading.
Are their any specific desks/roles (i.e. merger arbitrage) that will provide me with the best experience for IBD/PE internships in the future?
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Merger Arbitrage is not a strategy usually pursued at a long/short hedge fund. You will probably be given a bunch of menial tasks, just try to do well and learn as much as possible.
Do long/short hedge funds have any roles that will prepare me for IBD?
dude thats the wrong direction
100/100 IB Analysts would take a long/short hedge fund job over their current job. You are definitely thinking in the wrong direction. This is like an IB Analyst asking how he can improve his chances of becoming an assistant for the group he works in.
L/S HFs are interesting, but let's not exaggerate. Less senior people at small HFs usually make less than BB bankers, and you get more pigeon -holed.
start at a HF and move to IBD? mention that in an interview when asked why hf's. lulz
Beyond money, what's more interesting in being a L/S HF analyst rather than being an IB analyst ?
Thanks guys !
hours? the work that your doing is actually interesting. no facetime. HF = unlimited pay. IBD = 70 straight across with a bonus.
I am one of the HF --> IBD jumpers. I am VERY happy with my decision. There is a reason why the normal route is 2yrs IB/ST then PE/HF...there is a learning curve that you go through as a junior. And it is much easier/less stressful to move up this learning curve at an IB than an HF. If I make a mistake here as an analyst in IB, whats the worst that can happen? I might get verbally abused but thats it. Same thing cant be said about some HFs...that same mistake could infuriate the PM/owner/founder (its his money btw) and well...could get a chair or telephone thrown your way.
Hours were just as long at my HF (plus the constant pressure/stress which makes it even worse than IB). There was facetime. There was NO UNLIMITED PAY as a junior since no one would trust you enough to give you a significant amount of money to play with and have it affect your bonus.
To the OP: Since you'll be at a fundamental shop, I will presume they do a lot of valuation type work (models, etc...). Try to get your hands on this stuff over the summer as it is directly transferable to IB. The hours will also be comparable so you can talk that up in your interviews as well. You will most likely do some (possibly very detailed) research as well - again, this can be transferable to IB. I'd say the most important thing you need to do is put together a legit story on why you'd like to jump from HF to IB. Other than that, just bust your ass and work hard. try to have fun as well.
One is market driven and one is pitch driven.
i worked in a LS hf as an intern before. great exposure, but yeah, you got paid minimum at the junior level. i still wont trade that internship for anything tho. u never know who you gonna meet and when opportunities are coming up, u got to be the right place to take them. ----i met my previous boss from last summer in a fund raising event.
As the above poster says and i have posted in the past the "hedge fund lifestyle" is not necessarily better just because the hours may be less. The pressure is crushing and the atmosphere can be really cut-throat. At many larger funds the atmosphere between the analysts is also horrible...the analysts are basically constantly at war with one another for face-time with PMs. At the fund I work for it is extremely common for analysts to get chewed up and return to the sell-side after a couple of years in the trenches. Usually not to banking but often back to be economists or research people.
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