break into HF from corporate development ?
Is it possible to break into hedge fund from corporate development (strategic planning) role? I think I can learn a lot about the sector by working in strategic planning, but will lack financial modeling experience.
My background: 28 , single, living in Dallas, master degree in engineering, 4 years working experience in consulting, CFA
I have two options:
1) ER associate in a mm bank (NYC, 100k Base, 15% bonus target)
2) strategic planning in a large public company in Dallas (100k base, 15% bonus target)
I'm interested in working in L/S equity hedge fund. Which option is better for me? The compensation for ER associate is quite low, especially bonus, considering it's in NYC. Although strategic planning is not close to investment, I can learn a great deal about the sector.
If your end goal is l/s hedge fund, then equity research would be the path of less resistance to get you there between the two options. By a large margin I would say. Can you do it after a strategic planning role? Sure, but I expect it will be much more difficult.
Without a doubt the ER route is the best to get into a L/S HF in my mind. What industry is the strategic planning role? What are the odds that there would be a L/S HF role focused on your specific industry?
What do you do now? Corporate planning is not going to be a good way to make the jump (not that it's a 0% chance). If the theory is that you can somehow "learn the industry" well enough to make yourself interesting as a sector specialist, why is this job inherently better for that than whatever you currently do (which you could conceivably use to learn a great deal about whatever sector it's in)?
I am currently in consulting. My knowledge and experience about the sector is more theoretical rather than practical. In corporate planning,I'll learn details about the industry.
Why a L/S HF specifically? As much as you could gain expertise from a corp dev role, the more natural jump would then be to PE as opposed to a HF where you probably don't need much more expertise than what you would get in ER. "Practical" knowledge won't necessarily help at hedge fund.
That being said, the industry to L/S HF jump certainly does happen even if it's atypical.
I don't have investment banking experience,so not sure if PE is feasible. I do like thinking about stock pitch ideas about companies in my sector. That's why I am interested in L/S hedge fund.
the sector is oil & gas
Liquid markets investing is the epitome of theoretical knowledge over the practical experience, from an industry/operating perspective. Effectively 0.0% of hedge fund analysts have practical experience operating or in most cases even working at the sectors they cover.
My hunch is that the skills you're missing are not going to be gained by working on capex budgets or projecting P3 reserves. If I were you I'd spend all of my discretionary time working on my financial modelling skills and doing research on companies.
You have the advantage that O&G is very "in"/topical right now and if you can get up to an acceptable level of financial proficiency you may be able to parlay your "differentiated" view (coming from industry consulting) into some attention from funds.
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