Best Route to a fundamentally driven HF in Londob: IB vs AM?
Hello, I am a money-driven student who also has a genuine passion for investing. My long term ambition is to become a PM at a hedge fund and eventually starting one (very brave, I know). I am trying to weight different offers. I have received an offer from a large AM in London for a rotation 6-months program, mainly in equities and Credit. I am leaning towards equities as my main interest. I have also gotten a full-time offer in M&A from a solid BB (Credit Suisse/Citi/BAML) and interviews coming up with GS/MS/JPM.
I have always wanted to be an investor and this leads me to go for the AM gig. However, given the shift to passive and the opinions I heard, I am scared that one cannot truly make it big when starting in asset management, I am passionate about investing but would want to earn ps1-3m+ in my late 30s and 40s. Can one do that by being a top performer in AM? And just as importantly, how easy is it to move to an HF if one is a good equity/credit analyst? Should I choose M&A over AM?
I know starting salaries for AM are slightly less than IB, but how about salaries 5-10 years in? How about total comp once you make it to PM? Does it rival that of M&A MDs?
Given my objective to make it big as a HF PM, should I start off at a reputable AM or in M&A?
Thank you all!
Bump
Bump
I am sure that the best way is not to create two different threads asking the same and bumping them two times in a few minutes. I hope that it is helpful.
bump
bump
Fwiw the shift to passive will just make markets less efficient long term. So no, passive won't make it impossible to make it big in AM. If anything there will be more opportunities to make excess returns as an active manager. It's happening in Japan right now.
Thanks, that is true, but in the meantime fees and salaries are shrinking and consolidation in the industry will result in layoffs. Also, do you you think transitioning to HFs is possible from AM?
In public markets, if you can generate alpha you're going to get paid.
RE LO to HF: Definitely possible to make the move, I see it all the time. Although I'd question if you'd want to in this current environment. Feel like career risk is underrated at jr. levels.
,
Sunt ut temporibus vel eum repellat ipsam harum aliquam. Omnis est non veniam recusandae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...