Hello,
I am in my last year of uni and I have full time offers from both Credit Suisse IB and the Allianz Global Investors, both in London. Which offer should I take given my objective of getting into a reputable Long/Short Equity hedge fund? Not interested in PE or anything else, just equities based hedge funds.
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Your life mill be miserable in IB, but you will get better training and after 2-3yrs you can move on. It's a tough decision, but you are fortunate to have a choice. Good luck.
Hello, thank you so much for your comment. I am definitely interested in public markets. How is AGI brand? I know it is smaller than Fidelity but still 500bn+ in AUM. Another thing I should add is that I should try to leave before my two years of rotations are up as I have been told I will be able to rotate in equities but I I have also been told that as you mentioned LO equities is shrinking and so at the end of the two years they could place me in infra or credit research (Which I do not want). Is it possible to jump into a L/S equity hedge fund after 12-24 months of FT experience in AGI? Another option AGI told me would be available is to do another third year of rotations, that would give me more time to find a HF job in case I have not been successful in recruiting yet. Any thoughts?
Both are great but your pipeline is larger with IB. Hedge fund headhunters mainly poach IB kids and while long-only has a relevant skillset, there's a bias for IB because there's a set expectation as to what you're capable of given that most IB's have training programs.
Hello, thank you so much for your comment. How is AGI brand? Another thing I should add is that I should try to leave before my two years of rotations are up as I have been told I will be able to rotate in equities but I I have also been told that as you mentioned LO equities is shrinking and so at the end of the two years they could place me in infra or credit research (which I do not want!). Is it possible to jump into a L/S equity hedge fund after 12-24 months of FT experience in AGI? Another option AGI told me would be available is to do another third year of rotations, that would give me more time to find a HF job in case I have not been successful in recruiting yet. Any thoughts?
For some reason, I don't see a ton of ex-LO guys moving over to HF. Not sure if it's because LO guys just choose to stay at LO, or if HFs have a bias against LO guys.
I think it's a combination of both. If you can find a good LO gig with a large/stable capital base, there isn't much reason to leave. Work 45-50 hours per week, probably make 500k+ as a senior person. It's a shrinking industry though. Active management is still quite solid with emerging markets, internationals and small caps with median managers actually beating benchmarks. But there's just less money in those strategies. Active US large cap long only stock pickers are pretty much dead. Long only quant is potentially an exception to this but i think even there it's still shrinking and switching to ETFs.
I have seen LO transition to L/S. This is from big names like Fidelity. Usually they had already done an MBA. I don't think it makes much difference with either. If you are interested in public markets I would take the LO and it would build a broader skill set than IB. But if you do want to keep other options open like PE I would take IB.
Hello, thank you so much for your comment. I am definitely interested in public markets. How is AGI brand? I know it is smaller than Fidelity but still 500bn+ in AUM. Another thing I should add is that I should try to leave before my two years of rotations are up as I have been told I will be able to rotate in equities but I I have also been told that as you mentioned LO equities is shrinking and so at the end of the two years they could place me in infra or credit research. Is it possible to jump into a L/S equity hedge fund after 12-24 months of FT experience in AGI? Another option AGI told me would be available is to do another third year of rotations, that would give me more time to find a HF job in case I have not been successful in recruiting yet. Any thoughts?
I know several people in that particular Allianz office. The analysts/pms are strong and you'll learn a lot if you get onto the right team. But almost everyone I know there is being annoyed about the (too German) corporate culture.. I'd say CS is better for prestige and your way into HF but Allianz has the more interesting work to offer in the short term imo.
Why do you think CS is a better way into hedge funds?
How is that too german culture?
AGI involves two years of rotations which I will try to make as much equities focused as possible (as opposed to infra, macro, credit, etc) . Want to leave to a HF before the two years are up as chances of being placed in equities are low
I should also add: I will be allowed to do one rotation (3months) in AGI’s internal hedge fund in Frankfurt
Any new thoughts based on these two infos?
You have no idea what kind of investing will interest you once you actually get into the industry. When I was a student I was 100% certain that I would end up in long-only equities in a deep value shop. Today I work in credit and wouldn't even consider leaving this space. Take the IB position as it will give you the widest possible exit opportunities, including both public and private markets. You can always join a long-only like AGI after your IB stint if that's what you want.
Off topic, but do you see people from L/S funds transitioning to credit? A lot of sector specific funds I've seen have started doing more privates and also even started up dedicated teams for credit, especially private companies. I've always been interested in investing across the whole cap-structure but not sure how specialized it is for credit.
Quite a few funds have a sector analyst who looks at both equity and credit ideas. I know that Kingstreet Capital had a set up like this in their London office. I've always felt that a good investor should be able to look across the capital structure and find the instrument with the best risk/return profile. My guess is it would be hard to move from a L/S position to a credit position as you won't have the experience reading bond docs/term sheets.
And what do u think about the exit options from PE MF Credit to HFs?
Why would you want to exit from PE MF Credit?
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