Career advice - moving to larger fund
Hi all,
I've been in my role as a L/S fundamental equities analyst for 2 years (started as an intern for the first 6 months). The problem is my team is very small and have been wanting to move to a bigger fund which present larger opportunities.
The problem is my fund is not well known (with small AUM) and its been extremely difficult to even get an interview. Through an insane amount of networking I managed to go through the hiring process of a $2bn AUM fund, I did 5 interviews and a stock pitch, apart from that I also got to the modelling test of Point72 once.
My question is to people who managed to transition from a small fund to a larger one, would you have any tips/advice on how you went about it? Considering the amount of headhunters I've reached out to, I was slightly surprised at how little responses I got back to even get into the hiring process of most funds.
Thanks a lot for your time.
Transitioning from a smaller fund to a larger one can be challenging, but based on the most helpful WSO content, here are some actionable tips to improve your chances:
Leverage Networking Strategically:
Networking is crucial, but it’s not just about quantity—it’s about quality. Focus on building genuine relationships with professionals at larger funds. Engage in meaningful conversations about the market, investment strategies, or specific stocks. As highlighted in WSO threads, making the interaction a conversation among equals rather than a one-sided Q&A can leave a lasting impression.
Showcase Passion and Track Record:
Many professionals at larger funds value candidates who demonstrate a genuine passion for investing. Maintain a personal portfolio (even if it’s a demo account) and be prepared to discuss your investment decisions, successes, and lessons learned. This can help differentiate you from candidates who only study stocks the night before interviews.
Target Smaller Teams at Larger Funds:
Smaller teams within larger funds may be more open to hiring candidates from less traditional backgrounds. Highlight your versatility and ability to take on various roles, as smaller teams often value adaptability.
Refine Your Stock Pitches and Technical Skills:
Your stock pitch and technical skills are critical. Ensure your pitches are well-researched, concise, and demonstrate a deep understanding of the company and its market. Additionally, be prepared to ace modeling tests and technical questions, as these are often used to filter candidates.
Be Persistent with Headhunters:
While headhunters may not always respond, persistence can pay off. Tailor your outreach to highlight your unique skills and experiences. If possible, get referrals from mutual connections to increase your chances of being noticed.
Consider Boutique Funds as a Stepping Stone:
If moving directly to a larger fund proves difficult, consider targeting boutique funds with slightly larger AUM than your current one. These funds may offer more visibility and opportunities, making it easier to transition to a larger fund later.
Focus on Execution and Industry Expertise:
As noted in WSO discussions, execution skills and having an investable point of view in a specific industry can set you apart. Build expertise in a niche sector and develop a strong pipeline of ideas to showcase during interviews.
Be Patient and Keep Grinding:
Breaking into a larger fund is often a long-term process. Continue networking, refining your skills, and applying to opportunities. As one WSO user emphasized, persistence and hard work are the foundation of success in this industry.
By combining these strategies with your existing efforts, you can improve your chances of making the leap to a larger fund. Good luck!
Sources: Interview with Simple As...Hedge Fund Analyst, Q&A: 3rd+ Year Associate - L/S Hedge Fund, Q&A: London L/S + event-driven analyst, Q&A - Starting Post-MBA Megafund PE, Feel Trapped, Exit Opps From Sell-Side ER?
I think the top funds have a list of "target" firms that they recruit from, and sometimes that list can be a bit arbitrary. (I'm sure there are reasons, but not communicated ones.)
All of the Top-4 MMs used to talk to me when I was in my previous seat, but now two of them no longer do. Despite the new firm having substantially higher AUM. I assume that's due to firm history and the reputation of firm leadership. Or maybe they just don't like my PM.
Have no advice besides "network and try to get referrals". The network piece obviously isn't trivial, given HF people will usually ignore your emails and LN messages.
Maybe email the PMs directly when you hear that they're hiring, to get around BD.
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