Buy Side ER or Top BB EB M&A/RX for L/S Equity
Buy Side ER or Top BB/EB M&A/RX for L/S Equity. Curious which one will better position a candidate for L/S Equity?
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Banking, in general, is better for L/S Equity. Most HFs looking for junior analysts are looking for someone with robust modeling skills. With that said, you can of course move from ER to HF. Just polish your modeling skills and impress the many clients you speak to in ER.
I don't understand why you got MS, but thanks for the comment.
Scratch what I said earlier. If the offer is for Wellington/Fidelity, take it and don't look back. I misread the title - thought it was sellside research. Congrats on a great offer!
What do you mean by buy side ER? L/S equity is technically buy side ER. Maybe you're referring to AM at a BB? I would generally lean towards making the move to the buy side now, but a lot depends on the quality of the role you're considering. IB provides broader exit options but doesn't necessarily set you up better for L/S equity.
For buy side ER, I am referring to places like Fidelity and Wellington etc.
In that case, you should take the Fido/Welly offer. You would already be on the buy side in a top-tier role - no need to pivot from the sell side later. Assuming you feel strongly about investing, this is an easy choice.
If you have a top long only ER job why would you switch to L/S? Your lifestyle, investment process, long term comp trajectory, stability of firm and portfolio are all better than almost any L/S funds out there. If anything L/S analysts are trying to move to the LO world not the other way around
Aside from the sweeping generalization, this is also just not true for the majority of people. Will address the points separately:
Lifestyle: better at LO
Stability: better at LO
Mobility: certainly not better at the LO's that churn associates out into MBA programs, which is what some (maybe many) out-of-college programs tend to do
Process: depends on the shop. I personally have not seen the level of rigor you should see at some LO's that you would expect given lack of turnover
Comp: pay is much less at LO at junior levels, seniors understandably rake it in. However, on the tail end you see LO founders won't measure up to HF founders due to fee structure
From those I know in L/S world, I've seldom heard a desire to be in LO world. Especially not right now
agree with this. Movement I've seen is form LO->L/S not the other way around. Also, there's a distinction even among L/S funds. If you are at a large asset manager then your risk parameters are much looser than being at MM like Citadel. So stress levels vary widely and your expected trajectory is very different.
Curious how would you choose if you are in OP's situation?
For L/S, Buyside ER. Assuming you're an investor at heart. Few reasons:
Scarcity. Lots of M&A/RX spots, very few at LOs. There's no illusion which is more selective (generally the LOs)
Skill set. More relevant here and you'll be a public markets investor from day one
Lifestyle. LO probably a good way to avoid early burnout
That said, RX is the way to go for special sits and DD funds.
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